Distributed systems refer to a network of independent computers working together to perform a task or process. In the context of cryptocurrency, distributed systems are crucial in ensuring the integrity and security of the network.
In cryptocurrency, a distributed system allows for transactions to be verified and recorded in a decentralized manner across multiple nodes or computers. This means that there is no central authority controlling the network, making it more secure and resistant to fraud or hacking.
All transactions in a cryptocurrency network are verified and recorded on a shared ledger known as the blockchain. This ledger is maintained by all the nodes in the network, ensuring transparency and immutability of the transaction history.
By using a distributed system, cryptocurrencies are able to operate on a peer-to-peer basis, without the need for intermediaries or third parties. This not only increases the efficiency of transactions but also reduces costs and the risk of censorship or manipulation.
