LeoGlossary: Decentralization

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The process of distributing power away from a central point. This can often create more resiliency to a system since the power is not in the hands of a few individuals or entities.

Many blockchains are coded as decentralized networks with many validators being required to assign block to the chain. This is based upon whatever format the protocol is designed for.

The key for blockchains is to have the code act as the authority, eliminating the need for a centralized intermediaries. This also reduces the level of trust the participants put on one another.

A fundamental piece of this is peer-to-peer (P2P) technology.

Decentralization is also often associated with a horizontal structure as opposed to vertical.

It is also one of the core tenets of Web 3.0.


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