Blockchain is about decentralization. The book of record, called a ledger, is open to the public. It is updated and continuously ratified by a widely distributed network of computer nodes and operators. These nodes run specialized software that confirms new data according to network rules. This is called minting a block. Anyone with the right skills can operate a node, maintain a branch of the network, mint blocks, and get paid for their work. This means there is no concentration of power, nor any single point of weakness.
In our “D-words” series, we are looking at how this tool for decentralization is applied in different ways. To review:
- DAOs are about decentralizing power and decision making in organizations.
- DeFi enables users to execute financial transactions without the hurdles, fees, and gatekeeping associated with banks, governments, and middlemen.
- DEXes allow holders to exchange money across any border, real or imagined.
- DIDs are a new, decentralized way to think about your identity and credentials.
- DAPPs are the software applications that provide the interface for these decentralized tools.
In each of these cases, the TRUST layer is provided by a transparent, immutable blockchain record – instead of by a government, bank, or other central authority.
Today we are adding a new D word to the list: DPIN
DPIN stands for Decentralized Physical Infrastructure Network.
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