What is a Decentralized Network? – BLiNQ Networks

A distributed network is similar to a decentralized network because there is no single centralized master server. However, distributed networks are made of equal, interconnected nodes. This means that data ownership and computational resources are shared evenly across the entire network, whereas this is not always the case in a decentralized network.

Unlike decentralized and distributed networks, a centralized network is built around a single, centralized server or master node. This single centralized server or master node handles all the data processing and stores data and user information that other users can access. From there, client nodes can be connected to the main server and submit data requests.

Centralized networks are currently the most widely used type of network on the web. These networks are dependent on a central network owner to connect all the other satellite users and devices — which means there is a single point of failure that can be deliberately exploited by malicious actors.

The majority of web services – including online banking accounts and video streaming platforms – are coordinated by a centralized network owner, meaning that all data transactions within these networks require verification via a third-party authority.

Each of these network architecture types has its own pros and cons.