Decentralised

In the general sense, decentralised refers to the distribution of authority. There can be no single authority figure or organisation; instead, control and decision-making responsibilities are shared.

Decentralisation in the Crypto Ecosystem

In the context of cryptocurrencies and blockchain technology, decentralised refers to a system or network that operates without a central authority or control. Traditional financial systems often rely on central authorities such as banks or governments to manage and regulate transactions.

In contrast, decentralised systems distribute control and decision-making across a network of participants. Decentralisation is a key feature of many cryptocurrencies, like bitcoin. In these networks, transactions are verified and recorded on a blockchain through a consensus mechanism involving a network of nodes (computers) rather than relying on a central authority.

The degree of decentralisation can vary among different cryptocurrencies and blockchain projects. Some may be more decentralised than others, depending on factors such as the consensus mechanism used, the number of nodes in the network, and the distribution of control among participants.

Learn more about decentralised protocols, read 5 Ways To Tell if a Protocol Is Decentralised.