While you may think the internet all runs in the same way, this isn't the case. There are now a number of different networks that can all be used for different reasons. Two of these networks are decentralized and distributed networks. But what exactly are these, and how are they being used today?

Why Are Centralized Networks Becoming Old News?

ethernet connection cables and router

It's firstly important to understand why decentralized and distributed networks are becoming more and more popular each year. What's wrong with traditional centralized networks? Well, a key issue acknowledged by many is that centralized networks rely on a lead server, which can harness all the network's data at once and control it entirely.

This makes centralized networks vulnerable to hacks and crashes, given that only one server needs to be infiltrated or taken down for the whole network to fail. Nevertheless, centralized networks are still the most popular network type used today. One may argue that this has to do with corporations desiring total control over their networks.

However, this can lead to big companies facing big problems. Ever seen one of your favorite social media websites go down? They're probably using a centralized network, and the master server has been hit by an external force or is facing a technical issue.

So, centralized networks could definitely do with an upgrade. Enter decentralized and distributed networks. So, firstly, what's a decentralized network all about?

What Is a Decentralized Network?

decentralized network setup
Image Credit: Crypto360/Flickr

You might have heard about decentralized networks recently, with the world of cryptocurrency and blockchain technology becoming more and more prevalent in modern society. These networks have a lot of great points, hence their increasing popularity. But what do they entail?

A decentralized network does not rely on a central server as traditional centralized networks do. Instead, decentralized networks use a variety of different connection points or nodes. No single node is capable of harnessing all of the network's information at any one time, which means no node is ever in control or in charge. Each node is capable of its own decision-making and information processing, which allows for a spread of power over the network.

Related: What Is a Decentralized VPN and How Does It Work?

So, where are such networks being used today? Well, both Bitcoin and Ethereum currently use decentralized networks, and there are several reasons why organizations are choosing decentralization over centralization today.

Firstly, decentralized networks cannot be hacked nearly as easily as centralized networks. This is because the invasion of one node will not result in control of the entire network. This network type is also great for preventing total system failures or crashes since the functionality is spread across the network. It's also easier to scale up the size of a decentralized network, given that you can just keep adding nodes or servers.

Additionally, decentralized networks allow for greater user control and privacy, given the nature of their structure. Many would argue that decentralized networks are the next step up from centralized networks, but some downsides exist with this up-and-coming technology.

Firstly, it can be very difficult to construct a decentralized network, given its complex structure. On top of this, it's also very hard to manage a decentralized network, given the numerous machines required that need consistent checkups and maintenance. This can, in turn, make decentralized networks pretty pricey to keep going.

So, now that we know what a decentralized network is, it's time to move onto the distributed network. What does this entail, and is it being used today?

What Is a Distributed Network?

figures stood on network drawing

Distributed and decentralized networks have some similarities, but they are not one and the same. A distributed network also does not rely on one central server, but the distribution of data and decision-making is spread evenly across all servers (which isn't the case for decentralized networks). Essentially, each server gets the exact same amount of control.

So, the key feature of distributed networks in contrast to decentralized networks is their use of equally powerful connection points. However, distributed networks can become centralized, unlike fully decentralized networks. This can be useful in some scenarios, such as the need for immediate system management from one server. Some prefer decentralized networks because they do not have this option.

Related: What Is a Decentralized Blockchain ID?

It should be noted that there's another definition for a distributed network, which is a bit more literal. Distributed networks can also mean physically and geographically distributed networks that incorporate a top-down node power system, which isn't the same as the first kind of distributed network discussed above.

So, what are the disadvantages of (the first kind of) distributed networks?

Well, distributed networks are overall a lot neater than decentralized networks, given how evenly the data and decision-making power is spread across the network. On top of this, they're very secure, considerably more than centralized networks (though this is also the case for decentralized networks).

Distributed networks are also very transparent, as it is known which authorities or individuals are controlling each node or connection point. Because of this, system faults, intrusions, or crashes can often be traced back to individual servers, making it easier to identify the issue at hand. Like decentralized networks, they are also easily scalable upon the addition of more servers.

But decentralized networks aren't perfect. They can be expensive to create and maintain, similar to decentralized networks. Another key disadvantage shared by both decentralized and distributed networks is that there is no one authority overseeing and controlling the whole network. This can have a negative effect on decision-making speed and overall network organization or coordination.

However, some certainly do not see this as an issue and believe that having one all-powerful, all-knowing entity within a network is problematic and unfair to users. This is the belief held by many who support the use of cryptocurrency over traditional money, given that cryptocurrency cannot be as easily regulated or controlled. Therefore crypto owners are more trusting of their transactions.

Decentralized and Distributed Networks Are the Future

With the increasing prevalence of decentralized and distributed networks, one can only assume that more and more companies will switch from centralized networks to these more secure and scalable options. While construction and maintenance continue to be an issue, that isn't to say it always will be. Here's to the future of the internet!