Decentralization

Meaning:

Decentralization refers to the distribution of power, authority, or control across multiple nodes or entities instead of being concentrated in a single central authority. In decentralized systems, decision-making and resource allocation are dispersed, promoting autonomy and reducing dependence on a central figure. This concept is prevalent in various domains, including governance, finance, and technology. In decentralized governance, decision-making authority is shared among multiple participants, fostering transparency and inclusivity. In decentralized finance (DeFi), financial activities occur on distributed blockchain networks without the need for traditional intermediaries. In technology, decentralization often involves the distribution of computing power and data storage across a network, enhancing security and resilience. Overall, decentralization aims to mitigate single points of failure, increase resilience, and empower individuals within a network by fostering a more inclusive and democratic structure.