Definition:
Decentralized is a term used to describe a system that is not owned or controlled by a single entity, such as a government, bank, or company. Instead, the product or service is run and maintained using the computing power contributed by a global network of participants.
Explanation:
Decentralization is the defining characteristic of blockchain technology and cryptocurrencies, such as Bitcoin. Since decentralized services do not rely on a centralized authority, they possess several benefits including censorship resistance, increased security, and resistance to hacking and manipulation. For example, Bitcoin is a type of decentralized currency since it is not owned by a bank or government. Records of all transactions are stored on ledgers which are then maintained on a network of computers owned by users around the world.
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