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      Is Solana Actually Decentralized?

      February 22, 2022
      in Cryptocurrency
      Reading Time: 1 min read
      Is Solana Actually Decentralized?
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      Is Solana Decentralized?

      Solana is often referred to as the next Ethereum, but what does decentralization mean in this context? In this article we’re going to take a closer look at the process of computing power distribution and whether or not Solana is decentralized.

      A Deep Dive into Solana

      What’s the difference between centralized and decentralized exchanges

      Centralized exchanges are where the exchange is held in one location, while decentralized exchanges are run from multiple locations. This means that decentralized exchanges are more difficult to hack because all of the data resides on the blockchain. However, when a central exchange is hacked, it can be more difficult for customers to recover their money because it was stored in a centralized location such as custody.

      Decision trees for trading

      The following is a decision tree for trading Solana Coin. It is meant to be a guide and not gospel.

      Pros and Cons of a Decentralized Exchange

      Solana is a decentralized exchange. This means that it’s not managed by one company and people don’t have to rely on one company to hold their crypto assets. Instead, it relies on a number of companies that help provide the service. This can be very good for investors because they can trade freely without having to worry about volatility or security concerns. The downside is that there is no account or personal information, which means that users don’t get customer support from the exchange if anything goes wrong.

      Conclusion

      Solana is fully decentralized, with no central control over the number of active nodes or the distribution of rewards.

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