The Blockchain Network

Published by Mario Oettler on

Due to the issues of centralized money systems mentioned in lesson 1, topic “What Problem Blockchain Tries to Solve“, we want to do away with a central intermediary. Therefore, if we talk about blockchains like Bitcoin, we deal with a decentralized network. In decentralized networks, nodes (users) are connected directly with other nodes. It could look like that:

Decentralized network

You can see that node A is connected to nodes B, D, and F but not directly to the rest of the network. This is an important feature of a decentralized network. Nodes do not know every other node (peers) of the network. They typically know only a few of them. Besides, that nodes can also disconnect and reconnect at any time. And they can either behave honestly or dishonestly.