Decentralization is a core principle of blockchain technology, ensuring that power and control are distributed across a network rather than concentrated in a single entity. In a decentralized system, no single party has control over the entire network, which enhances security, transparency, and resistance to censorship.

This approach contrasts with traditional centralized systems, where decision-making and data control are held by a central authority, making them vulnerable to corruption, manipulation, and single points of failure. Decentralization empowers individuals, promotes trustless transactions, and allows for greater innovation, as the network operates based on consensus among participants rather than a top-down directive. This principle is the backbone of cryptocurrencies like Bitcoin and Ethereum, driving the growth of decentralized finance (DeFi) and other applications that challenge traditional financial and governance models.

Decentralization is a core principle of blockchain technology, ensuring that power and control are distributed across a network rather than concentrated in a single entity. In a decentralized system, no single party has control over the entire network, which enhances security, transparency, and resistance to censorship.

This approach contrasts with traditional centralized systems, where decision-making and data control are held by a central authority, making them vulnerable to corruption, manipulation, and single points of failure. Decentralization empowers individuals, promotes trustless transactions, and allows for greater innovation, as the network operates based on consensus among participants rather than a top-down directive. This principle is the backbone of cryptocurrencies like Bitcoin and Ethereum, driving the growth of decentralized finance (DeFi) and other applications that challenge traditional financial and governance models.