This article was first published on Centrality - Medium
Understanding the technology behind Centrality’s marketplace of applications
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We’ll start from the basics — what is blockchain?
A simple way to understand about how a blockchain works is comparing it to a modern-day cooperative. Internet applications like Facebook and Google run on servers and infrastructure that they’ve built into data centres. Everything is built on top of these data centres, which these companies own and control. Blockchain allows a community of people to add their own computing power to a network and create a community-driven resource that we can run applications on top of instead of a company. The technology isn’t perfect, nor is it for every use-case. But there are lots of places where it can add value.
The network is all-inclusive (as long as you play by the rules)
The great thing about blockchain is that you don’t need to know who is in the network. It’s effectively self-policing because in place is a protocol — a software that establishes rules for how the network operates. The software code can’t be changed without the community’s consent. The protocol is open, meaning everyone can see what’s going on and all transactions are recorded in an open database that’s transparent to everybody. The database is distributed, so you don’t have data sitting in a centralised place that can be hacked, sold or leaked. The protocol makes sure everybody follows the rules which makes blockchain trusted. In other words, we create trust in the community using these protocols. If you don’t abide by the rules, you lose the economic rewards for participating in the system.
The network puts people in control of their own data
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Centrality - Medium