DIGITAL
CURRENCY
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CENTRALISED
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DE CENTRALISED
CENTRALISED
IN CENTRALIZED PAYMENT TRANSACTIONS,
A SINGLE ENTITY, OFTEN A BANK OR
PAYMENT PROCESSOR, ACTS AS A
MIDDLEMAN. WHEN YOU MAKE A PAYMENT,
YOUR TRANSACTION IS ROUTED THROUGH
THIS CENTRAL AUTHORITY. THEY VERIFY
THE FUNDS IN YOUR ACCOUNT, PROCESS
THE PAYMENT, AND TRANSFER THE FUNDS
TO THE RECIPIENT. THIS CENTRALIZED
APPROACH ENSURES SECURITY AND
RELIABILITY BUT CAN ALSO BE VULNERABLE
TO SINGLE POINTS OF FAILURE AND
POTENTIAL DATA BREACHES.
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DECENTRALISED
IN DECENTRALIZED CRYPTOCURRENCY
NETWORKS, THERE'S NO CENTRAL
AUTHORITY OR INTERMEDIARY.
TRANSACTIONS ARE RECORDED ON A
DISTRIBUTED LEDGER, KNOWN AS A
BLOCKCHAIN. THIS MEANS THAT MULTIPLE
COMPUTERS ACROSS THE NETWORK
VERIFY AND VALIDATE TRANSACTIONS,
MAKING THE SYSTEM MORE SECURE AND
RESISTANT TO CENSORSHIP. HOWEVER,
DECENTRALIZATION CAN ALSO LEAD TO
SLOWER TRANSACTION SPEEDS AND
HIGHER FEES.
BLOCKCHAIN
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