Bitcoin Cash decentralized peer-to-peer currency. But what is it? What does it mean?

Saying that Bitcoin Cash is a decentralized peer-to-peer currency is not an easy concept to explain, and if you tell people that Bitcoin Cash is that, they may not understand what it means and how such a thing works. I will try to answer that as simply as possible in this article.

Decentralized means no single point of failure within a particular system. In the case of Bitcoin Cash, the software that makes BCH run is put in many places simultaneously, and an attack to a single point is useless because the system will continue to work. So let me explain how the Bitcoin Cash decentralized system works.

Bitcoin Cash is software that runs on computers around the world. Each of those computers holds a copy of the software, making it decentralized, but it is not just software running. It is also hardware running. In short, Bitcoin and many other decentralized networks run on both software and hardware simultaneously in many locations at the same time. So if you bring one computer down, the others will maintain the network as nothing happened, so it is decentralized.

To be decentralized, computers must have mined a process that makes possible the creation of a ledger or book where all transactions are written, where the transactions are written is called a blockchain. Those processing the transactions are called miners. But a single computer can be a miner, node, and it holds the blockchain. The blockchain is just a big file where all transactions are written on, and that's proof that the network is working in a decentralized way and without compromises.

The node is a computer that runs the software and has some hardware running as well to process the transactions that are called a full node; if your network runs 1200 of those nodes, you will need to attack all nodes at the same time to bring the network down, and that's what it makes it decentralized the fact that your network runs on many computers around the world. Some nodes only have a copy of the blockchain. Still, they don't mine. That is a partial node, those nodes are good to share the work that full nodes already processed, but they don't help in decentralization because they don't mine if you have 1200 that mine and another 1200 node that doesn't mine. Still, all mine nodes are taken down, and your network will have a point to start again. If an entity takes over the mine nodes and not the other nodes can only observe, they can't process transactions, so your network will become inoperable.

In short, decentralization only means that your network exists in many computers simultaneously, and as such, if you take one unit down, the rest will continue as nothing has happened.

Peer-to-peer means that you can value from one place to another without the need of a third party. In the case of Bitcoin Cash and many other cryptocurrencies, you are only sending a numeric value like 0.10 from one computer into another computer. You don't need a bank or government to know that you have received an authentic copy of such a number. In the case of Bitcoin Cash, we call those numbers satoshis which is a numeric value only of 0.00000001 BCH.

So, Bitcoin Cash, a decentralized peer to peer currency, is a group of computers running around the world that if you take one out, the others will continue the network, where you can send a numeric value, that will be a very little explanation because now you can send not only satoshis but also other values that are represented in numbers.

Those numeric representations have value because someone else in another world is willing to buy that number, just like any other market. Still, the only difference is that this value is not created by banks, governments, or individuals but by code which can't be changed without the approval of the whole network, and that's what makes Bitcoin Cash a great asset to hold, not only is decentralized but its rules are written in code so that a single individual can't take over and change the rules of the software as a whole and even if some conspired to change the rules like for example the total supply being 21 million those who want to keep the 21 million limit at the place will have to continue running their version of the software that doesn't have changed that rule. We call that forking.

You trust numbers and computer power when it comes to proof of work cryptocurrencies such as Bitcoin Cash. I rather trust a computer that has software rules than a human being who has every motivation to cheat me out of anything that may have value.

Conclusion.

In the proof of work network like Bitcoin, Cash decentralization means the software that makes the web possible runs on multiple computers that serve as nodes and miners. They all work together to keep the blockchain going without any third-party alterations. That is also decentralization, the fact that no central authority, central bank, or government can change the rules of the network.

Someone in my previous article reminded me about copyright images, so I have decided to use free-to-use pictures. If my following paper doesn't have a shot, I couldn't find one that was open to sharing.

What do taxation, inflation, and capital controls do with Bitcoin Cash and other cryptos?

https://read.cash/@francis105d1/what-do-taxation-inflation-and-capital-controls-do-with-bitcoin-cash-and-other-cryptos-d4032447#:~:text=What%20do%20taxation%2C%20inflation%2C%20and%20capital%20controls%20do%20with%20Bitcoin%20Cash%20and%20other%20cryptos%3F

@Shohana, I am taking your advice into action. Thank you.