Centralization

Centralization denotes the concentration of control, authority, and access within an individual or group. In the context of blockchain, centralization refers to the privileged level and distribution of nodes responsible for verifying and managing the network. Blockchains that rely on nodes concentrated in a limited geographical area are considered more centralized. Centralized blockchains may allocate profits to a select few rather than allowing widespread participation. Such a centralized structure can hinder equitable governance, decision-making processes, and promote data censorship and control.