In the current craze of digital currency, Bitcoin and Ethereum, as two representative cryptocurrencies, have attracted much attention. As decentralized currency systems, what technical mysteries and operating principles are hidden behind them? Let us unveil the veil of decentralization and explore the wonderful world of Bitcoin and Ethereum in depth.

Exploring the Decentralization of Bitcoin

As the first application of blockchain technology, Bitcoin's decentralized characteristics make it a unique form of currency. Through blockchain technology, Bitcoin realizes a decentralized transaction verification and accounting mechanism, so that anyone can participate in the Bitcoin network without the participation of a central agency. This decentralized feature ensures the security and transparency of Bitcoin, allowing people to trust this digital currency system more.

Ethereum's Decentralization Road

Compared with Bitcoin's simple currency attributes, Ethereum, as a smart contract platform, has taken a solid step on the road to decentralization. Ethereum's smart contracts enable decentralized applications (DApps) to run on its platform, realizing more complex decentralized functions. This decentralized feature of smart contracts makes Ethereum a more diversified and open platform, opening up a broader space for the application of blockchain technology.

The secret behind the technology

To understand the decentralization of Bitcoin and Ethereum, we must have a deep understanding of the essence of blockchain technology. Blockchain achieves secure data storage and transaction traceability through decentralized distributed ledgers. Each block contains the information of the previous block, forming an unalterable data chain. This technological innovation provides a solid foundation for the decentralization of Bitcoin and Ethereum, making it an important part of today's digital economy.

Future Outlook of Decentralization

With the continuous development of blockchain technology, the application scenarios of decentralization are also expanding. From the financial field to supply chain management, from copyright protection to voting, decentralized technology is changing our lifestyle and social structure. As representatives of blockchain technology, Bitcoin and Ethereum will continue to lead the development direction of digital currency and smart contracts and contribute to building a more decentralized world.

Conclusion

As representatives of decentralization, Bitcoin and Ethereum are not only a digital currency or smart contract platform, but also a symbol of technological innovation and social change. Their birth and development highlight human exploration and pursuit of decentralization. On the road ahead, let us carry with us our passion for technology and desire for innovation, witness the charm of decentralization together, and create a new era of digital currency!

How are Bitcoin and Ethereum decentralized? The birth of DHT can be said to be a symbol of the decentralization of the modern Internet: the original Internet was completely decentralized, and each computer (node) accessed each other through various protocols such as FPS. In the subsequent development process, the Internet gradually developed a server + client model suitable for large-scale commercial applications, specializing some nodes into servers, and the access between other nodes gradually decreased. This is also the reason why the modern Internet is called "centralized".

In the development process of Internet centralization, P2P network protocols represented by BT download have become a symbol of Internet decentralization. P2P stands for peer-to-peer network (peer-to-peer), also known as point-to-point technology. It is an Internet system without a central server and relying on user groups (peers) to exchange information. Its role is to reduce the nodes in the previous network transmission to reduce the risk of data loss. Unlike the central network system with a central server, each user end of the peer-to-peer network is both a node and a server. Any node cannot directly find other nodes and must rely on its user group to exchange information.

In a sense, blockchain technology is an extension of P2P. Compared with P2P, blockchain has greatly expanded the application scenarios and solved the problem of rewarding nodes. The discreteness, scalability, and fault tolerance emphasized by P2P itself can also perfectly support the operation of blockchain networks. Among them:

Discreteness: The nodes that make up the system do not have any central coordination mechanism.

Scalability: Even if there are thousands of nodes, the system should still be very efficient.

Fault tolerance: Even if nodes continue to join, leave, or stop working, the system must still achieve a certain degree of reliability.

Taking the Gossip Protocol algorithm used by Bitcoin as an example, the Gossip algorithm can use a random way to spread information to the entire network, just like the original meaning of Gossip "gossip".

During the operation of Gossip, a node in the network randomly selects several other nodes as the transmission object, and the node transmits the corresponding information to the selected nodes. Then the nodes that receive the information repeat the same work, and finally establish a Bitcoin node network.

The Kademlia (also known as Kad) algorithm used in Ethereum directly specifies the structure of the network and the way to exchange information through node queries. Kademlia network nodes communicate using UDP. All nodes participating in the communication form a virtual network and are identified by node IDs, which directly correspond to file hashes. The node it represents stores information about where to obtain files and resources. When we search for certain values in the network, the Kademlia algorithm needs to know the keys associated with these values and then starts searching in the network step by step.

At each step, some nodes are found whose IDs are closer to the key. If a node directly returns the searched value or no node IDs closer to the key can be found, the search will stop. This method of searching for values is very efficient: similar to other distributed hash table implementations, Kademlia only visits O(log(n)) nodes in the search for values in a system containing n nodes. A decentralized network structure has an even greater advantage, which is that it can significantly enhance the ability to resist denial of service attacks. Even if a whole group of nodes in the network are attacked by flooding, it will not have a big impact on the availability of the network. By bypassing these vulnerabilities (attacked nodes) and reweaving a network, the availability of the network can be restored. This is one of the reasons why the Ethereum system is more efficient than the Bitcoin system.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.