Centralized vs decentralized vs distributed networks + Blockchain
A network is a collection of devices or systems that are connected to each other that allows them to share resources between them.
There are broadly three different kinds of network as highlighted in the diagram:
- Centralized network — In case of a centralized network, we have a central network owner. The central network owner is a single point of contact for information sharing. The biggest issue with a centralized network is with a single central owner it also becomes a single point of failure. Further, with a single copy stored with the owner, every instance of access to the resource leads to an access issue with time.
- Decentralized network — As for the decentralized network, the we have multiple central owners that have the copy of the resources. This eliminates the biggest problem of single point of failure with centralized network. With multiple owners, if a particular central node fails, the information can still be accessed from the other nodes. Further, with multiple owners the speed of access to the information is also reduced.
- Distributed network — The distributed network is the decentralized network taken to the extreme. It avoids the centralization completely. The main idea for the distributed network lies in the concept that everyone gets access, and everyone gets equal access.
BLOCKCHAIN AND DISTRIBUTED NETWORKS
The blockchain makes use of the distributed network, such that everyone downloads and interacts with all the information that is available on the Blockchain. The need for this arises from the core concept of having a completely decentralized system with no dependency on a 3rd party system. Further, having complete access ensures that one does not need to depend on anyone else for any help.
