Glossary - ChicksX

Decentralized means a system operates without a central authority, distributing control across a network of participants.

Decentralized refers to a system where control and decision-making are distributed among various participants instead of a single entity. In the context of cryptocurrencies, it means transactions are processed and verified by a network of nodes rather than a central authority like a bank. This enhances transparency, security, and resistance to censorship. Each participant in the network has equal power, preventing any single point of failure. Decentralization allows for peer-to-peer interactions and reduces the risk of manipulation. It fosters innovation by enabling open participation and reduces reliance on intermediaries, promoting trust and autonomy in digital transactions.