What is decentralization?

Crypto decentralization refers to the distribution of control, authority, and operations across a network of participants rather than relying on a single central entity, such as a government, bank, or company. In the context of cryptocurrencies and blockchain technology, it means that no single party has complete dominance over the system—data, transaction validation, and network governance are managed collaboratively by a dispersed group of nodes (computers) running the blockchain software. This is achieved through consensus mechanisms like Proof of Work (PoW), Proof of Stake (PoS), or Kaspa’s BlockDAG, where participants agree on the state of the ledger without needing a central intermediary.

Decentralization Use:

Government:
Instead of one central authority making all the decisions, power is shared among different levels of government.

Technology:
Blockchain is a decentralized system that records transactions in a way that can’t be changed, making it more secure and transparent.

Finance:
Cryptocurrencies are decentralized, meaning they’re not controlled by any single bank or government.