How does a distributed network work in the context of cryptocurrencies?

1 answers

• Shailendra TripathiOct 14, 2023 · 2 years ago
  In the context of cryptocurrencies, a distributed network is crucial for maintaining the security and integrity of the system. Instead of relying on a single central authority, such as a bank or government, a distributed network allows for multiple nodes to participate in the verification and validation of transactions. This ensures that no single entity has control over the network, making it resistant to censorship and manipulation. Additionally, a distributed network enhances the security of cryptocurrencies by making it extremely difficult for hackers to compromise the system. Since the blockchain is distributed across multiple nodes, an attacker would need to gain control of a majority of the nodes in order to alter the transaction history. This makes distributed networks highly secure and reliable. Overall, a distributed network plays a fundamental role in the functioning of cryptocurrencies, enabling decentralization, transparency, and security.
  966

  483