Emerging Technologies
Decentralization
Definition
Decentralization is the process by which the activities of an organization, particularly those regarding planning and decision-making, are distributed or delegated away from a central, authoritative location or group.
Why It Matters
In technology, decentralization aims to build systems that are not controlled by a single entity. This can lead to systems that are more resilient, censorship-resistant, and fair, as they remove single points of failure and control.
Contextual Example
Bitcoin is a decentralized currency because there is no central bank or government that controls it. The network is maintained by a distributed community of participants.
Common Misunderstandings
- Decentralization is a core principle of blockchain technology and the Web3 movement.
- It is not an all-or-nothing concept; systems can be decentralized to varying degrees.