Decentralization refers to the distribution of authority, power, or control across a network or system rather than concentrating it in a single central entity. In decentralized systems, decision-making and governance are dispersed among multiple participants or nodes, reducing the reliance on a central authority.

In the context of technology and blockchain, decentralization is a fundamental concept. A decentralized system operates without a single point of control, making it resistant to censorship and less vulnerable to single points of failure. Blockchain technology, which underlies cryptocurrencies like Bitcoin, exemplifies decentralization by maintaining a distributed ledger across a network of nodes. Each node on the network has a copy of the entire blockchain, and consensus mechanisms, such as proof-of-work or proof-of-stake, ensure agreement on the state of the system without the need for a central authority.

Decentralization is often associated with increased security, transparency, and resilience. It can empower individuals by providing more direct control over their assets and information. As technology continues to evolve, the concept of decentralization extends beyond blockchain, influencing various sectors, including governance, finance, and information systems, with the aim of fostering more democratic, resilient, and inclusive structures.