Decentralization Explained

If you have heard about cryptocurrency or blockchain, you have most likely heard of the term “decentralized” as well. To get a clear understanding of what decentralization is, you must first understand what a centralized network is. In a centralized network, all nodes or users of a given network will connect to a central server that ultimately oversees the network. In a decentralized model, all nodes are interconnected and communicate directly with each other to eliminate the need for one singular controller. Without a central server, there is no dominant force, which gives equal power to each person using the network. For this reason alone, decentralization is one of the reasons why blockchain and cryptocurrencies have grown in popularity.