What is a decentralized network and how does it differ from a centralized network?

In a centralized network, a central authority or middleman is responsible for maintaining the network and ensuring that all transactions are valid. This means that there is a single point of control and failure, which can be a security risk and limit scalability.

In contrast, a decentralized network does not rely on a central authority. Instead, it is run by a network of computers that work together to verify transactions and maintain the network. This means that there is no single point of failure, making the network more secure and resistant to attacks. Decentralized networks also have the potential to be more scalable and transparent than centralized networks, as they can be designed to allow anyone to participate in the network and view the transaction history.

Blockchain technology is an example of a decentralized network, as it uses a distributed ledger to store transactions and relies on a network of computers to verify transactions and maintain the ledger.