…ike logical centralization of data, through decentralization of architecture and political matters. That means that data in a public blockchain (for instance) is politically decentralized (no single party can make unilateral decisions, for example), architecturally decentralized (no single source of computing power runs everything like a honeypot of data or a single point of failure), but logically centralized (all the data resides on the same Terabyte of data everybody needs to copy to have a node). I think the next step is to bring decentralization to the logically centralized part of blockchains.
…bution of power for instance). I think this is something worth researching and experimenting about. The separation of the service provider (the nodes and miners) from the ownership of data (the smart contracts and cryptography) certainly fix a lot of problems with the big digital players that today control and centralized the internet. It’s like having a completely neutral cloud provider (brought by virtually anybody in the world).
One item to note: state channels are built specifically for each individual application, and work only for that specific application and its specific state. This has been a strong discourager for development teams — building a new state channel for an app is expensive and time consuming.
…r example, you and I work together and want an easy way to pay each other for lunches, coffee, etc. So we open a payment channel and each fund it by depositing 10 ETH. That 10 ETH — called a state deposit — is locked into the channel. Now when we pay each other using the payment channel (and we both have to sign every transaction so that the channel knows the transaction is true), the smart contract records the transaction and transfers the money around internally, but does NOT send the transaction to the underlying blockchain. The payment channel knows and keeps track of our bala…
…nsfers the money around internally, but does NOT send the transaction to the underlying blockchain. The payment channel knows and keeps track of our balances. So there is no transaction fee or delay in our payments to each other.
Payment channels are smart contracts — deployed on a blockchain — that internally, and without writing them to the underlying blockchain, record transactions that happen among a group of users.
…lly, a unique application of public-key cryptography is to generate unforgeable digital signatures. The digital asset could be coupled with a public-private key pair. This single key pair could then generate as many digital signatures as needed, each one represents a piece of the underlying asset. These digital signatures effectively “tokenize” the asset, making it transferable between individuals .