In traditional finance almost all financial transactions had to go through a trusted central third party. That means that all transactions from person a to person b will go through the service of a bank or corporation before being passed on. During this process the centralized third party usually takes a massive fee.
![Centralized Network Image Connected Computers in a centralized Network](https://nerva.one/xnv-app/uploads/2022/05/centralized-network.jpg)
For example Paypal. Money is transferred to different accounts within the PayPal infrastructure.
In this example Paypal is the trusted third party and it has a centralized database or ledger that they use to keep track of the transactions.
![Paypal Workflow Network Money Flow Paypal Network](https://nerva.one/xnv-app/uploads/2022/05/paypal-workflow-network.jpg)
On the other side, in a decentralized ledger, there is no single trusted third party (bank or corporation). Instead, there is a large number of nodes or peers that come to a consensus on each transaction that takes place. This is the key technology of Nerva, Bitcoin and similiar crypto currencies.
![Decentralized Blockchain Network Decentral connected Computers](https://nerva.one/xnv-app/uploads/2022/05/decentralized-blockchain-network.jpg)
When a Nerva transaction is made it goes through multiple computers on the Nerva network that are running specialized software, which checks that transaction for accuracy and completeness.
![Decentral Nerva XNC Crypto Network Nerva CPU Network Mining Nodes](https://nerva.one/xnv-app/uploads/2022/05/nerva-xnv-network-hashrate.jpg)
The nerva network also utilizes ring signature technology. Ring signatures protect a user’s privacy and ensure that transaction are untraceable.
![Ring Signatures like Monero Crypto Ring Signature explanation](https://nerva.one/xnv-app/uploads/2022/05/ring-signature-network-transaction.jpg)
This means, no single entity (bank or corporation) controls the transactions. The transactions are verified and approved in a peer-to-peer manner by different computers on the network running specialized software which anybody can download and run on his or her own computer!