Why Are We Doing It ?

[ArkX69]

Hi, I just want someone to tell me that why do we use the term centralized again and again, like centralized node, centralized exchange.
And the same thing with Decentralized what actually is decentralized ?

[krakxn]

Well, that is one of the core concepts to the blockchain technology, and an integral part of Bitcoin, so much that the creator went under a pseudonym and essentially vanished for true decentralization which some protocols couldn't achieve due to government-involvement and suppression.

Good read: https://www.blockchain-council.org/blockchain/decentralized-vs-centralized/

Hope this helps! All the best with the course.

[alymurtazamemon]

@ArkX69

Centralized means => someone, some group, or an organization has special control over something.
Decentralized is the opposite of it, it means => nobody has control over a thing, all things are mentioned via a code and that code is public so anyone can see.

This central authority problem was discussed in the late 90s but practically implemented in 2009 when Santoshi Nakamoto put some light on spending money and he discussed why we have central authorities that are controlling money and why we cannot remove these middle authorities and make it decentralized? Then he introduced Bitcoin which was made with the help of code (smart contracts) and nobody was controlling it. He defines some rules (that we can white paper) that you can read.

In 2014 Ethereum team put some light on this issue, and they said that we can use this technology not just for money but for all of the applications that required a middle man, ex. banks, organizations, escrow, etc. Before that, the language used for creating bitcoin was not created for this purpose that's why they introduced solidity language for creating smart contracts that can write code and make every possible centralized thing decentralized.

This is the main thing that we are shifting from web2 to web3 and I suggest you look at starting the intro part again to understand the actual problem that we are using this technology. Maybe I missed something here But Patrick had cleared this concept amazingly you must watch it again.