Definition Of Decentralized Network

On this webpage, we will be discussing the Definition Of Decentralized networks. A decentralized network. is a group of interconnection but different elements that interact with one another without the essential for a centralized power or server. Datafication and Blockchain Technology. Actors And Roles. Power Relations

Definition of Decentralized Network

A decentralized network can be defined as a collection of protocols spread out over several computer devices call nodes. In simple terms, it represents a group of interconnections. Yet distinct components relate to each other in the absence of a centralized server. The element of decentralization arises from the absence of a centralized server. The network control by a group of domain authorities that share the network load and provide backup if one server goes down. Rather than depending on one central server, a decentralized network spreads information-processing tasks among numerous devices. Each computer has a current copy of the available data in a distributed system. With the current progress in technology, decentralized networks have been able to provide PCs. And other devices with substantial computing space that integrate and employ for distributed processing.

Although decentralized networks are different from centralized networks in various ways. Noteworthy is the fact that they don’t consistently distribute data storage and processing over the network. While still depending on noticeably more than one primary server per network. Also, while centralization relies on one point of governance, decentralization relies on multiple points of governance.

More info

A Blockchain is an example of a decentralized system that operates on a distributed ledger. It permits nodes to store data and allows all transactions to pass through. For the data’s content to function, an agreement must reach. Some of the benefits of networks like this include system stability, scalability, and privacy. One of the most important advantages of decentralized network administration is that it has no real single point of failure. This is because individual users’ workstation does not depend on one central server to conduct all activities. In addition, decentralized networks are easier to set up. Because new devices can connect to increase computational power.

Furthermore, decentralization may help in resource distribution optimization by making certain that end-to-end service delivery with higher effective. And reliability and also ensuring lower chances of crippling failure. Moreover, in a decentralized system information moves via various distinct locations. And not through a single point, it provides improvement of privacy to end-users, making tracking over a network more challenging.

Becoming a trend are decentralized social networks that function on servers run independently rather than being controlled by a company. Some popular examples are Mastodon and Twitter’s upcoming “Blue Sky”. Although having their advantages, a major con to such networks is that because of their dynamic and complex architecture they are exceedingly expensive to maintain and difficult to build and control. Decentralized networks require numerous devices that need to be modified and upgraded to operate well with the newest functionality and security standards rather than a single main server. They may also be less effective when it comes to energy consumption and responsiveness since data needs to sometimes move over complex paths from one system to another. This usually results in requests taking longer to resolve.

Read on Decentralize Network

Decentralized networks define as a network configuration with numerous authorities that serve as a centralized hub for a subsection of participants. If this hub is lost, participants who depend on it will be unable to communicate. While innovations in the digital domain are progressively shaping the daily processes and interactions of individuals, educational institutions, companies, and governmental organizations, the theoretical framework of governance use regards these are yet to advance at the same pace and lag in terms of the regulation of new technologies and their social impacts. Blockchain is one of these latest technologies a multifacet tool that can provide solutions for many budding issues like digital identity, privacy, data ownership as well as future decentralized decision-making.

The conception of decentralized network governance relies on social network theory. How society manages has changed. Because of the pressures of globalization, functional differentiation, and technological specialization, governance processes, and mechanisms have become increasingly decentered, horizontal, and, ultimately, network.

Policy-making no longer relies primarily on the exerted power of a single actor, which has traditionally been the state. Instead, interactions and societies are becoming increasingly governed by networks that comprise a diverse set of public and private actors. Recognition that the digital era is increasingly fragmenting the playing field between governance actors.

These changes necessitate an updated conceptualization of what governance is, as well as a consideration of what extent new technologies like blockchain technology [and also digital ledger technology (DLT)] can contribute to effective and legitimate governance mechanisms. The objective of this paper as earlier stated is to combine the literature on governance with social network theory to develop a new approach to governance: decentralized network governance. Within the governance literature, policymaking is becoming increasingly conceptualized in terms of different modes of governance.

Collection Of Data And The Blockchain Technology

The digital domain which includes design, compilation, Dissemination and dispersal of information no longer relies solely on social techniques but increasingly on technology.  Determination of updates you see on Facebook, press agencies rely on data analysis to assess the newsworthiness of information is by Algorithm. Also digitally grinding for information to target advertisements at individuals through social networking sites and blogs. These algorithms are designed and used by private actors.  Blockchain technology is pledging to improve the digital currency and improve logistics. And aid in operating digital originality in a decentralized and trustless manner.

Digital data is the core manifestation of information which is essential for governance (social coordination). This means that governance is majorly affected by the conditions of the digital domain. The most common examples of this are artificial intelligence(AI) and blockchain technology. As increasingly more numbers of our social interactions are being formed by these technologies, the political as well as economic worlds are also becoming more structured and regulated by the effects of AI and DLT, increased connectivity, and the services around them.  Researchers, as well as professionals, are predicting a data revolution that is as disruptive in force and has as much impact as the industrial revolution.

Collection Of Data And The Blockchain Technology

The likely uses and value of AI and DLT are unpredictable with restrictions. This unpredictability is arguably one of the driving forces behind the rapid pace of innovation in these fields. Academics, data analysts, and corporations are in the process of finding value in data and its decentralized management. They are also looking into ways that data sets operate and link. And are trying to determine what can learn from such analyses.

DLT and blockchain technology define as decentralized and trustless ledgers that record transactions over a peer-to-peer network. These characteristics create the likelihood to provide transparency and accountability. Technologies like this could not only affect the financial sector like Bitcoin and Libra. But also affect other fields like supply chain management (SCM), smart contracts, voting (e.g liquid democracy), digital identity, water management e.t.c.

Simply put, a blockchain is a decentralized database that keeps a record of assets and transactions over a peer-to-peer network. The assets not only include money or transactional information. But also information about ownership, contracts, goods, etc. While other peer-to-peer networks duplicate the value transferred, blockchain doesn’t. Rather it registers a value transfer from one actor to another. Moreover, DLT does not require any central control system. it stores the transaction history in blocks of data cryptographically together. As it replicates on every node in the blockchain network. It becomes an immutable and transparent historical record of all transactions.

More Info

 The technical specifications of DLT systems are becoming increasingly varied. This shows that often-highlighted features of blockchain technologies, such as immutability, transparency, and trustlessness, are design features rather than the sine qua non-conditions. However, one can say that blockchain is a technology that lowers the uncertainty regarding transactions between parties that do not otherwise share trust. The idea of a “trustless” technology means that DLT, by nature of a validated ledger shared across all peers, reduces the uncertainty of not having recourse if something goes wrong with a transaction. Since DLT allows the tracing of every transaction, from the beginning until validation. And adds to the blockchain (or similarly structured ledgers), users can verify whether an error is happening, and also where the error occurs.

 The external governance component on the other hand is reliant upon the groups of servers and individual nodes for the operation of the network and decision-making.  Summarily, if actors control more nodes and server capacity, they can apply undue influence on decision-making more strongly than others. In addition,  developers themselves can offer code upgrades through open participation and self-selection, and miners can vote on protocol changes based on computing power.

Two main effects observe from the policy-making perspective as a result of the major changes caused by big data analytics, AI, and DLT to the core concepts of governance. They are :

The Actors And Their Roles

The roles and relationships that actors have developed with each other are changing. As new actors are emerging on the national and international stages. New actors who are linking the digital with the physical world are appearing as more powerful players on both stages. These are not only big companies that are dominant in collecting and analyzing big data like Google and Facebook. But also smaller groups of interest are gaining ground via the quasi-democratizing effect of blockchain technology. The equalizing effect of digital communication. Anonymous and LulzSec are hacking collectives recognition by powerful players. 

Furthermore, the cyber domain has established new and changing roles for different governance actors. Big data generators, collectors, utilizers, blockchain miners, server providers, etc. These are new roles that are shaping the relationships between actors. A good example of the changing effect that this has had on relationships between actors is “the paradox of individuality in big data”. Though the individual plays a passably unimportant role as a generator and utilizer of data and authenticator in the blockchain. He still has the potential of becoming powerful. Examples of this power (of the individual as the utilizer of technology) are the numerous hacks that affect the blockchain community, e.g., the Mt. Gox hacks, BitStamp hack, Bitcoinica hacks, etc.

The Power Connection Technology

Actors such as technology companies involved in blockchain technology are constituting new and changing power relationships. For instance, Ethereum or IOTA networks have become progressively more powerful. Because ownership is in the hands of those who develop the means,  collect data, and repurpose the tools.

In the area of big data, collection and storage and over what period determine by collectors including state agencies. Big data users are mostly private companies. Use the data by defining and re-defining it for purposeful analysis. Small groups and individuals operating as hacktivists, cybercriminals, and cyber terrorists can challenge the power of corporations and states. While no restrictions on national areas due to the digital domain spanning the entire world. The power relationships between actors influence social coordination. And as such since it’s now global, the source of power changes. As we will see below, the different kinds of relationships (nodal relationships between actors) can become very relevant in the exercising of power.

Read On

With the great shift in power relationships caused by the digital transformation of big data. Blockchain technology, and AI, are technologies provide by private companies. And data purchase from large data collectors is now tremendously dependent upon many sectors like intelligence agencies, the banking system, and political parties. Consequently, the legal, economic, political, criminal. And military domains have undergone massive changes due to the digitalization of the world. As we will show, traditional modes of law and governance are doing little to conceptualize, control, and coordinate these shifts in power.

Generally,  these emergent technologies, and blockchain technology, in particular, are already tacitly or explicitly imposing their governance norms, when seen from the perspective of Lessig’s “Code is Law”. However, further investigation is necessary to ascertain whether the imposed norms of governance also require regulation and governance themselves.  

There is a need to strike a balance between the new power distributions and the tacit governance norms and structures imposition by technology. Vis-à-vis the existent normative framework and governance structure surrounding our democratic principles. Therefore, the changing roles of governance actors and thereby the available mechanisms of governance need to be reconceptualized. This is so because for example, about the pace of technical innovations, legal norms are known to fall behind. And also because the possible illegitimate uses of big data pose an immense threat to fundamental rights and need some form of regulation and monitoring. Traditionally believed to be protectors of public interest, public actors cannot adequately govern the spaces built by technological innovations. Besides, public actors expose to criticisms over the widespread collection of individual data and the leaks of such data.


Over time, governance mechanisms have changed because of globalization, higher technical specialization, and functional differentiation. However, it generally needs to adapt to the technical innovations of the digital world and particularly adapt to the increasing use of blockchain technology. DLT, digital networks, and blockchain technology are rapidly designing our societies and power relationships due to their reliance and use of them. At a time when their full potential is still debatable and unknown, the effects of these new technologies as governance tools are highly substantial.

In this current article, we have made available the first structured steps towards the needed reconceptualization of governance as it applied to societies highly shaped by digital networks and blockchain technology. A framework of decentralized network governance has been put forth by us. As shown above, decentralized network governance is in no way restricted to DLT. It applies as well to all recent power relationships whose features include the dominance of private actors who make available to other private actors networks of communication.

Definition Of Decentralized networks. A decentralized network. is a group of interconnection but different elements that interact with one another without the essential for a centralized power or server. Datafication and Blockchain Technology. Actors And Roles. Power Relations

See the List of things to learn.
  1. Blockchain Technology
  2. Defi
  3. NFTs
  4. DAOs
  5. Crypto
  6. Web 3.0
  7. Altcoin Tokenomics
  8. Metaverse
  9. Smart Contracts

Leave a Comment