Distributed Network

In the crypto world, a Distributed Network refers to a decentralized network infrastructure where processing power, data storage, and decision-making authority are distributed across multiple nodes or participants. Unlike traditional centralized networks where control is vested in a single authority or entity, distributed networks rely on consensus mechanisms among network participants to validate and record transactions.

In a distributed network, each participant maintains a copy of the network's data or ledger, ensuring redundancy and resilience against single points of failure. This redundancy enhances the network's security and fault tolerance. Distributed networks often utilize peer-to-peer (P2P) communication protocols to facilitate direct interactions between participants, enabling efficient data transfer and communication without the need for intermediaries.

In the context of cryptocurrencies, distributed networks form the underlying infrastructure for blockchain technology, where transactions are recorded, validated, and stored across a distributed network of nodes. These networks ensure transparency, immutability, and security of transaction data while enabling censorship-resistant and trustless transactions.