Is blockchain decentralized or distributed?

Blockchain is both distributed and can be decentralized, but these are different concepts. Distributed means the data is stored across multiple nodes rather than a single server, reducing the risk of failure or attacks. Decentralization means no single entity controls the network, which is typical of public blockchains. Private blockchains, however, may choose some level of centralization to suit business needs.

How to invest in blockchain?

Since blockchain is a type of technology, you can't invest in "it" per se; however, you can invest in companies or organizations that use it. Cryptocurrencies are a popular form of blockchain investment since they allow people to purchase the currency or token that powers a particular blockchain or uses the blockchain. Another way to invest in blockchain is by choosing companies that are developing blockchain technologies and purchasing stock in those companies.

What's the difference between blockchain and cryptocurrency?

Blockchain is the underlying technology that stores data securely and transparently. Cryptocurrency, on the other hand, is one of the most popular applications built on blockchain technology. While every cryptocurrency relies on a blockchain, not every blockchain is used for cryptocurrency.

Are blockchains safe from hacking?

Blockchains are highly secure due to cryptography and decentralization, but vulnerabilities can exist in smart contracts, wallets and exchanges rather than the blockchain itself.

James Edwards

Editor

James Edwards was the global cryptocurrency editor at Finder. He coordinates a distributed team of journalists to help further Finder's mission of helping people make better financial decisions.

He has been using Bitcoin since 2013 and began working in the industry in 2017. He takes pride in boiling down complex topics into language his parents can understand.

His expertise has seen him called on to report at events such as TechCrunch Disrupt, CoinDesk Consensus and IBM Think and has coordinated a vast number of high-profile interviews with the industry's brightest minds.

He is a regular contributor to Nasdaq, The Street and is frequently called upon for market commentary in Australia and abroad.

Education

Bachelor of Psychology (University of Sydney)
User Experience Design (General Assembly)

Featured publications

Regular contributor to NASDAQ and The Street

Is it best to stick with just one exchange?

It's difficult to find one exchange with all the coins and features you want. I spread my trading around several exchanges to make sure I'm getting exactly what I need, while also diversifying my risk, should the exchange get hacked or shut down. To further minimise my risk I use one registered locally, so they are subject to local laws and regulations.

Crypto wallets are difficult – are they really necessary?

Learning to use a crypto wallet is an essential part of your journey, but many people find them difficult to use at first. Go slow, read plenty about how they work and remember that each blockchain is different. Test out transactions with small amounts to prevent big mistakes. If you've got a sizeable investment, then consider using a hardware wallet for the best security.

Who needs a hardware wallet?

A hardware wallet is essential for anyone serious about cryptocurrency. They offer the highest level of security for your long-term investments and can be paired with a Web3 wallet for use with DeFi. I never use crypto without one. After security, the main difference is the number of blockchains supported, so make sure to choose one that suits your portfolio.