Decentralization is the principle of distributing power and decision-making across a network rather than concentrating it in a single central authority. This approach enhances security, resilience, and transparency by eliminating single points of failure.
In the realm of cryptocurrencies, decentralization ensures that no single entity has control over the entire network, fostering trust among users and reducing the risk of censorship.
It is a core tenet of blockchain technology and underpins many of its innovative applications, driving a more open and equitable digital ecosystem.
« Back to Glossary Index