Block Chain - Decentralization

Decentralization means that no single authority controls the blockchain network. Instead, control is distributed among multiple participants (nodes).

In traditional systems, data is stored on centralized servers. If the server fails or is attacked, the entire system can collapse. Blockchain removes this single point of failure.

Each node in a blockchain network maintains a copy of the ledger. When a transaction occurs, it must be validated by multiple nodes before being added to the chain.

This structure increases security, because hacking one node does not compromise the entire system. An attacker would need to control most of the network, which is extremely difficult.

Decentralization also increases trust, as users do not need to rely on a third party such as a bank or government institution.

Another advantage is fault tolerance. Even if some nodes go offline, the network continues to function normally.

 

Because of decentralization, blockchain is widely used in systems where trust, transparency, and security are critical.