A distributed network in cryptocurrency refers to a system where multiple computers, known as nodes, are connected to each other and work together to perform tasks like validating transactions and maintaining the security of the network. Each node in the network stores a copy of the blockchain, which is a ledger containing all transaction records.
This decentralized nature of a distributed network ensures that there is no central point of control or failure, making it resistant to hacking or downtime. This also means that no single entity has the power to manipulate or control the network for their own gain.
Nodes in a distributed network communicate with each other using a consensus mechanism to agree on the validity of transactions. This consensus mechanism ensures that all nodes reach an agreement on the state of the blockchain, even if some nodes are malicious or have incorrect information.
Overall, a distributed network in cryptocurrency promotes transparency, security, and decentralization within the system, making it a reliable and trustworthy way to transact value across the network.
