Decentralization

Decentralization is a fundamental aspect of blockchain technology, reducing or eliminating the need for intermediaries across various industries and use cases. Decentralized finance (DeFi) platforms, for instance, remove banking institutions from financial instruments, allowing profit distribution and governance to extend to users and the broader community. Decentralized networks achieve consensus through crowdsourcing, making it challenging for any single entity to control or censor network data. However, optimizing decentralization may impact network throughput.