What does decentralized market mean
this paper mainly interprets an entrepreneur's transitional interpretation and amplification of the word "decentralization"
entrepreneurs or some people obsessed with Entrepreneurship often say that our procts are "decentralized" when they talk about procts in public
people are blind to things and the so-called unconsciousness, so what is "decentralization"? To understand "decentralization", we must first know what is "centralization"
1. The Internet is a new form of information transmission. Centralization is the centralized release of information, and participants often have no right to speak. The right to speak here is the right to speak at the level of guiding public opinion
2. Decentralization means that participants can have the right to speak, make voice and freely spread information
how is centralization formed
the lack of information resources leads to centralization. To some extent, the Internet user group is also the reason for the formation of centralization
how is decentralization formed
because the standardization of information resources leads to centralization, to a certain extent, the rise of Internet user groups has the conditions to build decentralization, and users' demand for information is expanding.
the first step is to register (open an account) and set the password. The second step is user authentication (KYC). The third step is to recharge. Here comes the key. The third step is the most important. Because you need to charge money to your address in the exchange before you can trade money in the exchange. The address of the exchange is actually a wallet address, but the ownership of the wallet is not the user, but the exchange, that is to say, the private key of the address, you don't have it!!! Do you understand the meaning
well, after recharging, the transaction is finished. The user submits the instruction (hanging order) to the server, and then the exchange will be responsible for matching the transaction, which is exactly the same as the stock. The last is cash withdrawal (withdrawal of currency). Users can send instructions to transfer the currency from the exchange address to their wallet address. The above is the trading mechanism of the centralized exchange. In these steps, all actions will have costs. No matter you recharge, trade or withdraw money, gas and handling charges can't escape
then let's look at the decentralized exchange. The trading mechanism is different from the centralized exchange. The first step is to register (open an account) and set the password. It doesn't make any difference. But then it's a little different. KYC is not used. But because there is a private key, the ownership of this address is completely controlled by the user. The second step is recharging. This is not very different from the centralized exchange. You still have to make your own gas
after recharging, we can also trade in the decentralized exchange. Users can also register orders, and exchanges will also be responsible for matching transactions, but the matching is done by smart contracts. Finally, cash withdrawal (withdrawal of currency) is initiated. After withdrawing currency, users can directly transfer the currency from the address of the exchange to their wallet address. This step is the same as that of the centralized exchange
the above is the trading mechanism of centralized and decentralized exchanges, and the difference between them is also obvious. Because all currencies in the central exchange are under its control, the trading efficiency is very high, and it is similar to the stock trading process, convenient and suitable for most users. Conversely, the risk lies in this. If the exchange itself loses its integrity or is attacked by hackers, the user's capital (currency) is not guaranteed
all the transaction processes of decentralized exchanges are completed by smart contracts, so the transaction efficiency is relatively low (TPS of blockchain technology has always been a soft rib), but relatively, the capital (currency) is completely in the hands of users, so the security is relatively high. In addition, there are also KYC, where KYC is needed for centralization, but not for decentralization, and the security of personal information is relatively high. Compared with the decentralized exchange, the advantages of the centralized exchange lie in the trading depth and the number of users, which are unmatched by the decentralized exchange
therefore, centralization and decentralization have their own advantages and disadvantages. It depends on the user's own choice. They like convenient, centralized, secure and decentralized.
secondly, the biggest value of the decentralized exchange is that users have absolute control over their own assets, and all transaction data and records will be linked through the blockchain smart contract, so as to ensure the openness and transparency of transactions and greatly rece the trust cost of users to the exchange
thirdly, it is very difficult for hackers to steal user assets unless they can get each user's private key. Even if the exchange's private key is leaked, the user's assets cannot be transferred without the user's private key, so it is very safe. With decentralized exchanges, you no longer have to worry about the risk of losing or stealing money
for this reason, with the graal maturity of the underlying technology of blockchain, decentralized exchange has great development potential, which is the trend in the future.
compared with the early Internet (WEB 1.0) era, Web 2.0 content is no longer proced by professional websites or specific groups, but the result of participation and creation by all Internet users with equal rights. Anyone can express their views on the Internet or create original content to proce information together
with the diversification of network service forms, the decentralized network model becomes more and more clear and possible. After the rise of Web 2.0, the services provided by Wikipedia, Flickr, blogger and other network service providers are decentralized. Any participant can submit content, and Internet users can co create or contribute content
with the emergence of more simple and easy-to-use decentralized network services, the characteristics of Web2.0 become more and more obvious. For example, the birth of services more suitable for ordinary Internet users, such as twitter and Facebook, makes it easier and more diversified to proce or contribute content to the Internet, thus enhancing the enthusiasm of Internet users to participate in the contribution and recing the threshold of procing content. Eventually, every netizen becomes a tiny and independent information provider, making the Internet more flat and content proction more diversified
decentralized computing is a computing mode that allocates hardware and software resources to each workstation or office. In contrast, centralized computing is to centralize most computing functions locally or remotely. Decentralized computing is a modern computing model. On the contrary, centralized computing generally existed in the early computing environment. A decentralized computer system has many advantages over the traditional centralized network. With the rapid development of desktop computers, their potential performance far exceeds the performance requirements of most business applications. As a result, most desktop computers have idle computing power. A decentralized computing system can maximize the efficiency of these potential. However, whether it increases the effectiveness of the whole network is still open to question.
In a system with many nodes, each node has a high degree of autonomy. Nodes can connect freely to each other to form a new connection unit. Any node may become the stage center, but it does not have the mandatory central control function. The influence between nodes will form nonlinear causality through the network. This open, flat and equal system phenomenon or structure is called decentralization
with the deepening of the interaction between subject and object, the constant balance of cognitive function and the continuous improvement of cognitive structure, the indivial can be released from the egocentric state, which is called decentralization< br />
The decentralization of blockchain refers to the form of social relations and content generation formed in the process of blockchain development. It is a new network content proction process relative to "centralization"
blockchain is an important concept of bitcoin, which is essentially a decentralized database. At the same time, as the underlying technology of bitcoin, it is a series of data blocks generated by using cryptographic methods. Each data block contains the information of a batch of bitcoin network transactions, which is used to verify the effectiveness of its information (anti-counterfeiting) and generate the next block
blockchain is unified in the whole network, so it is logically centralized. From the perspective of architecture, blockchain is based on peer-to-peer network, so it is decentralized. From the perspective of governance, blockchain makes it difficult for a few people to control the whole system through consensus algorithm, so it is decentralized
extended data:
characteristics of blockchain Decentralization:
decentralization, not without the center, but by the node to freely choose the center, freely determine the center. In short, centralization means that the center determines the node. The node must depend on the center, and the node cannot survive without the center
in a decentralized system, anyone is a node, and anyone can be a center. Any center is not permanent, but phased, and no center is mandatory for nodes
with the diversification of network service forms, the decentralized network model becomes more and more clear and possible. After the rise of Web2.0, the services provided by Wikipedia, Flickr, blogger and other network service providers are decentralized. Any participant can submit content, and Internet users can create or contribute content together
reference source: network blockchain
reference source: Network decentralization
since 2013, many decentralized trading platforms have emerged. Different from the centralized trading platform, the decentralized trading platform does not need to register an account, and can participate in the transaction by using the personal digital asset account
secondly, every transaction of the decentralized trading platform is carried out through the blockchain, and it needs to wait for the confirmation of the blockchain before the transaction is successful. At the same time, the decentralized trading platform is not responsible for keeping users' assets and private key information. On the one hand, it avoids the moral hazard of the trading platform, on the other hand, it requires you to keep your private key well
e to the low liquidity and slow transaction processing of decentralized trading platforms, the total transaction volume only accounts for 0.03% of the global total transaction volume of digital assets. At present, the tokens of airswap, kyber, 0x and omisego can be traded on huobi.pro.
