Decentralized vs Centralized vs Distributed

Peer-to-peer networking and cloud technologies are fascinating when you start to think about how information is moved. 

Particularly with financial institutions that are prone to aggressive and constant cyber attacks. 

A key aspect about blockchain is it is a decentralized network. There is no central control. This is important for security to not have a central point for attackers to focus on.

 Illustration from “On Distributed Communication Networks”, showing three types of networks.

Illustration from “On Distributed Communication Networks”, showing three types of networks.

This is different from a distributed network. Even though Amazon may have various cloud services with servers distributed across the globe, it is still controlled by Amazon. An issue arises with Amazon and your data could be in danger. 

I am personally not so concerned that Amazon controls the servers. It seems to be working well and thousands of businesses are built on AWS. They must be doing something right. 

However, the future with blockchain technology promises a decentralized environment where no one company holds all the data.

Cheers,

Fahad