As a whole, decentralization is not a new concept, but instead, one that has been known to humanity for decades and one that can be applied to any matter, not only to technology. However, in relation to Blockchain and cryptocurrency, such as Bitcoin, decentralization is generally associated with distributed databases or DDBs.
Decentralization in Blockchain
In a Blockchain, data is stored in a peer-to-peer network on all participating computers or, as they are also called, nodes. This approach brings several benefits since the lack of any centralized point of entry dramatically reduces the risk of information being corrupted as a result of a malware attack or technical failure. The other benefit is that information in a decentralized network can’t be manipulated.
Blockchain and DDBs
A distributed database, sometimes called a Decentralized/parallel database or DDB, differs from a distributed file system in that Decentralized databases are not an arbitrary set of files that are individually stored on different nodes of the network but rather are complete databases with a single high-level interface that provides access to the information.
Distributed databases can have different levels of replication – from the complete lack of duplication of information to complete repetition of all data in all distributed copies, as implemented in Blockchain technology.