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Topic:   - page 2. (Read 2702 times)

copper member
Activity: 1442
Merit: 529
May 30, 2016, 04:14:57 PM
#10
The line between decentralised and centralised wallets is blurred. Electrum lets you keep your private key but connects to the Bitcoin network through one of a limited number of servers. Blockchain.info lets you keep your private key but you must access the Bitcoin network through its website. Coinbase is fully centralised because you don't know your private key, but Electrum and Blockchain.info are partly centralised.

How is electrum centralised when your private keys never leave your pc and you can do what ever you like with your coins. The only thing electrum needs is an internet connection. Centralized mean some central supreme authority watching over you and making decisions for you, decentralized mean no central authority, you are free to do what you like, thats the big difference between Electrum and Coinbase which don't let you know your private keys.

Electrum's wallet connects to the Bitcoin network through one of a number of servers. One of those servers is what relays all your transactions to the Bitcoin network. You have to trust the server isn't malicious. If it's malicious your Bitcoins are less secure. With the full Bitcoin core wallet it doesn't matter if your wallet connects to a malicious node because it connects to multiple nodes at the same time, and ignores any malicious one.



Quote
Is that part of the system decentralised, or is that part of the system centralised?

Electrum is stored on your device but relies on servers for transactions information. Some wallets store the entire blockchain but electrum does not. Wallets that do not store the blockchain locally are called lightweight wallets. Lightweight wallets have to query their servers each time they are run.

So are you suggesting me to switch to Bitcoin Core, I can install it in my laptop as in my PC I don't  have that much space left. Is Bitcoin core more secure than electrum, if thats the case I am giving it a try, hopefully it will run on Linux.
hero member
Activity: 938
Merit: 501
May 30, 2016, 01:01:17 PM
#9
I have the bulk of my holdings on paper wallets but also have some that I use for transactions on blockchain.info for convenience
hero member
Activity: 658
Merit: 500
May 30, 2016, 12:59:24 PM
#8
Centralized wallet is wallet where you don't have full access over your bitcoin (no private key), but usually they offer service such as instant sell/buy bitcoin, bitcoin credit card or no transaction fee. (Example : Coinbase and Xapo)
Decentralized wallet is wallet where you have full access over your bitcoin (you get private key), but without much service because it's decentralized. (Example : Electrum and Mycelium)

So, Which one is better for you? Centralized wallet or decentralized wallet?
Wow this info is helpful and informativ ,  i will choose between this is decentralized wallets .i am also using this mycelium wallet to have my full access and my private keys are kept .but i'm also using centralized wallet to exchange and buy .
member
Activity: 67
Merit: 10
May 30, 2016, 12:43:48 PM
#7
Centralized wallet is wallet where you don't have full access over your bitcoin (no private key), but usually they offer service such as instant sell/buy bitcoin, bitcoin credit card or no transaction fee. (Example : Coinbase and Xapo)
Decentralized wallet is wallet where you have full access over your bitcoin (you get private key), but without much service because it's decentralized. (Example : Electrum and Mycelium)

So, Which one is better for you? Centralized wallet or decentralized wallet?
I will prefer decentralized wallet as we are the masters of the wallet and we have all the control over our wallets, but that isn't the case with centralized wallets as anytime they can run off with our bitcoins and can make any excuse.
sr. member
Activity: 326
Merit: 250
May 30, 2016, 12:40:33 PM
#6
The line between decentralised and centralised wallets is blurred. Electrum lets you keep your private key but connects to the Bitcoin network through one of a limited number of servers. Blockchain.info lets you keep your private key but you must access the Bitcoin network through its website. Coinbase is fully centralised because you don't know your private key, but Electrum and Blockchain.info are partly centralised.

How is electrum centralised when your private keys never leave your pc and you can do what ever you like with your coins. The only thing electrum needs is an internet connection. Centralized mean some central supreme authority watching over you and making decisions for you, decentralized mean no central authority, you are free to do what you like, thats the big difference between Electrum and Coinbase which don't let you know your private keys.

Electrum's wallet connects to the Bitcoin network through one of a number of servers. One of those servers is what relays all your transactions to the Bitcoin network. You have to trust the server isn't malicious. If it's malicious your Bitcoins are less secure. With the full Bitcoin core wallet it doesn't matter if your wallet connects to a malicious node because it connects to multiple nodes at the same time, and ignores any malicious one.



Quote
Is that part of the system decentralised, or is that part of the system centralised?

Electrum is stored on your device but relies on servers for transactions information. Some wallets store the entire blockchain but electrum does not. Wallets that do not store the blockchain locally are called lightweight wallets. Lightweight wallets have to query their servers each time they are run.
legendary
Activity: 1120
Merit: 1012
May 30, 2016, 12:30:45 PM
#5
If you aren't the sole controller of your private keys, you don't have any bitcoins.
copper member
Activity: 1442
Merit: 529
May 30, 2016, 12:10:12 PM
#4
The line between decentralised and centralised wallets is blurred. Electrum lets you keep your private key but connects to the Bitcoin network through one of a limited number of servers. Blockchain.info lets you keep your private key but you must access the Bitcoin network through its website. Coinbase is fully centralised because you don't know your private key, but Electrum and Blockchain.info are partly centralised.

How is electrum centralised when your private keys never leave your pc and you can do what ever you like with your coins. The only thing electrum needs is an internet connection. Centralized mean some central supreme authority watching over you and making decisions for you, decentralized mean no central authority, you are free to do what you like, thats the big difference between Electrum and Coinbase which don't let you know your private keys.
sr. member
Activity: 326
Merit: 250
May 30, 2016, 12:06:42 PM
#3
The line between decentralised and centralised wallets is blurred. Electrum lets you keep your private key but connects to the Bitcoin network through one of a limited number of servers. Blockchain.info lets you keep your private key but you must access the Bitcoin network through its website. Coinbase is fully centralised because you don't know your private key, but Electrum and Blockchain.info are partly centralised.
legendary
Activity: 1904
Merit: 1074
May 30, 2016, 11:22:09 AM
#2
The golden rule will always be to have full ownership of your private key. The centralized service should never know what your private key is, even if they operate like Blockchain.info. I think most

people would opt for decentralization over centralization. The best option will always be for you to not make use of any service, but to handle your own Bitcoin affairs, but for convenience people opt

for extra services which is normally not associated or applicable with decentralized options.  Roll Eyes
legendary
Activity: 2870
Merit: 7490
Crypto Swap Exchange
May 30, 2016, 11:16:50 AM
#1
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