BLOCKCHAINF practice question 14 of 15

A distributed network is always decentralized.

Full set: 84 questions
Answer options
A: True
B: False
Correct Answer:
FALSE
Explanation

The terms 'distributed' and 'decentralized' are not synonymous. A distributed system is one in which components are located on different networked computers, which then communicate and coordinate their actions by passing messages to one another. This describes the physical or logical architecture of the network. A decentralized system is defined by its lack of a central point of control or authority. Governance and decision-making are spread among the network participants. A network can be distributed but still be centralized. A prime example is a cloud-based application run by a single company. The servers and data may be distributed across multiple data centers worldwide for performance and resilience, but the company retains ultimate control over the network's rules, data, and operation. Therefore, it is a distributed but centralized system. While decentralized networks are inherently distributed, the reverse is not always true.

Why Incorrect

The statement "True" is incorrect because it conflates an architectural characteristic (distributed) with a control/governance characteristic (decentralized). It is a common misconception, but many distributed systems exist that rely on a central authority for control and coordination.

References

1. Narayanan, A., Bonneau, J., Felten, E., Miller, A., & Goldfeder, S. (2016). Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press. In Chapter 1, the authors distinguish between centralized, decentralized, and distributed systems, noting that decentralization is about control, not just network topology.

2. Gensler, G. (2018). Lecture 2: Money, Ledgers & Bitcoin. 15.S12 Blockchain and Money, Fall 2018. MIT OpenCourseWare. In this lecture, the distinction is made clear: "You can have something that is distributed, but it's still centralized... A lot of cloud computing is distributed computing, but it's centralized."

3. Buterin, V. (2017, February 6). The Meaning of Decentralization. This foundational essay, often cited in academic blockchain courses, distinguishes between architectural decentralization (how many physical computers a system is made of) and political decentralization (how many individuals or organizations ultimately control the system). A system can be architecturally distributed/decentralized but politically centralized.

Scroll to Top