Decentralization

In many ways, decentralization is the defining characteristic of blockchain technology. By adopting decentralized processes and technology, the role of intermediaries across industries and use cases can be reduced or even eliminated. For example, central banks are being replaced by decentralized financial platforms. In this way, there is no central entity that distributes value to the wider community. At the core of decentralized protocols/platforms, they use the community to control and process data. In this way, it becomes a lot more difficult for an entity to control or censor this data. However, many experts believe that achieving optimal decentralization can reduce network throughput.

Discover more terms

Related Cryptopedia

Validator

In the context of blockchain technology, a validator is the one responsible for...

Dino (Decentralized In Name Only)

This term refers to crypto projects that pretend to be decentralized...

Staking

Staking is the process by which a user of a blockchain network "stakes" or locks their cryptocurrency assets to a network ...

Smart contract

A smart contract is a kind of digital contract in a blockchain that executes itself...

Oracles

Oracles are third-party information providers that send real-world...

Gas

The cost associated with handling and executing smart contracts on the Ethereum blockchain is called gas...

Related blogs

07 - 07 - 23 Knaken

BlackRock’s jump into the World of Bitcoin: What Does It Mean for the Crypto Market?

Dive into the world of BlackRock and Bitcoin with this comprehensive blog post. Learn how the world's largest asset manager is stepping into the crypto space and what this means for the financial industry.

29 - 06 - 23 Yoren

Partner: Delta Quant B.V.

Delta Quant Capital, a Dutch asset management firm, specializes in delta-neutral trading in the digital asset market through the Delta Quant One Fund. By using balanced investment strategies, they offer their clients a unique way to manage and increase their capital.

Cryptopedia: Decentralization