Decentralization
The distribution of power and control across many participants, reducing single points of failure or authority.
- Type
- conceptblockchain
Decentralization disperses control among multiple parties so no single entity can unilaterally change the rules or censor transactions. In blockchains, it manifests across three axes: consensus participation, network infrastructure, and development/governance.
A blockchain with many independent full nodes, geographically distributed miners/validators, and multiple client implementations is more decentralized than one controlled by a few parties.
Decentralization can reduce throughput and make coordination slower, but it increases resilience, neutrality, and censorship resistance.
A highly decentralized PoW network might process fewer transactions per second than a centralized system, but it can remain functional even if some regions go offline.
Related Terms
Node
→A device that participates in a blockchain network, with roles varying from transaction validation to block creation.
Proof of Work (PoW)
→A consensus algorithm where computing power is used to solve complex problems, verify transactions, and create new blocks.
Proof of Stake
→A consensus algorithm where one's stake in the cryptocurrency is used to validate transactions and create new blocks, offering an energy-efficient alternative to Proof of Work.
DAO (Decentralized Autonomous Organization)
→A DAO is an on-chain governance structure where rules are encoded in smart contracts and decisions are made collectively by token holders or members.
All terms and definitions may update as the Cryptionary improves.
