What is Decentralization?

Decentralization in crypto means no single entity (government, company, or individual) has full control over a network, ensuring fairness, security, and censorship resistance. Instead, power is distributed among many participants.

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Misconceptions About Decentralization:

❌ Not Anonymity – Transactions are public, but users can remain pseudonymous.
❌ Not Just Locked Supply – A project locking 80% of tokens isn’t truly decentralized if control remains with a small group.
❌ Not Always Perfect – Some projects claim decentralization but have centralized decision-making structures.

Examples:

✅ Bitcoin (BTC) – Fully decentralized with thousands of independent miners and nodes.
✅ Ethereum (ETH) – Decentralized but still evolving governance.
❌ Many Altcoins – Claim decentralization but have insiders holding a majority supply.

Key Aspects of Decentralization:
	1.	No Central Authority – Control is spread across a network of nodes, validators, or miners.
	2.	Trustless & Permissionless – Anyone can participate without needing approval from a central entity.
	3.	Censorship Resistance – No single party can block, alter, or control transactions.
	4.	Security & Transparency – Public blockchains make data open and auditable in real time.

Great explanation! Decentralization really puts the power back into the community's hands. It's fascinating how it ensures trust and security by distributing control.