Decentralised

Decentralization describes systems and networks where authority, control, and decision-making are distributed across multiple independent participants rather than concentrated in single entities or central authorities. In blockchain networks, decentralization manifests through consensus mechanisms where numerous nodes validate transactions, distributed governance where token holders vote on protocol changes, and architectures eliminating single points of failure. This contrasts sharply with traditional client-server models where central administrators control data and operations. Decentralized systems prioritize resilience, censorship-resistance, and transparency, though they often sacrifice speed and efficiency compared to centralized alternatives. Example: Bitcoin exemplifies decentralization through its proof-of-work consensus where thousands of independent miners compete to validate blocks, no central authority controls the network, and transaction history is replicated across every full node, making it impossible for any single actor to censor or reverse transactions. Why it matters for Web3: Decentralization is the foundational principle enabling trustless systems where users interact directly without intermediaries. It provides censorship resistance, reduces systemic risk from single points of failure, and returns control of assets and data to individuals rather than institutions.

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