Blockchains rely on decentralized nodes to power the virtual computers on which they exist. Each node is a computer that verifies transactions in exchange for a reward. For bad behavior, the rules of the blockchain punish a node, ensuring good behavior. Since every blockchain transaction is verified by multiple nodes, there are little to no chances of error.
Put simply, blockchains run on virtual computers that are powered by several decentralized physical computers.
Decentralization
Blockchains are powered by virtual computers, which are themselves powered by several physical computers spread across the globe. Although some private and corporate blockchains, like BNB, rely on fewer computers (nodes), most well-known blockchains, like Bitcoin and Ethereum, run on over a million computers.
The computers that power the blockchain’s virtual machine could be either small ones, like a low-powered laptop that outputs a few megahashes per second, or large mining rigs capable of several gigahashes per second.
Trustless Verification
All transactions in a blockchain are verified so that no bad transaction will ever be permanent on the chain. To do this, when a transaction is submitted, it is verified by multiple validators. When a certain number of validators reach consensus (say 15%), it is said to be verified and then finalized on a chain.
Since validators are selected at random for verification, no single validator or a group of validators acting together will ever be able to grab all the computers responsible for the validation of that transaction.
Put it simply, it is almost impossible for anyone to grab all the nodes of a blockchain if it is sufficiently decentralized.
Identifying Bad Actors on Blockchains
Blockchains have a very simple way to identify bad actors, whether a user or a validator.
A user will never be able to post a transaction in a wrongful manner because the network will prevent it from sending a transaction until everything is in order.
For a validator, any mischief done will quickly be detected by other validators (chosen at random) when they relay the transactions after signing them. Proof of Work chains will simply remove it from the network, and Proof of Stake chains will additionally confiscate its stake.
Frequently Asked Questions
Does blockchain have a central authority?
Some blockchains, like BNB and XRP, are centrally controlled, while others, like Bitcoin and Ethereum, have no central authority.
How do Blockchains achieve consensus without a central authority?
Blockchains use multiple verifications by independent validators to reach consensus.
What is the key feature of blockchain technology where there is no single central authority that can control the network?
Decentralization
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
