Decentralisation
One of the main pillars of cryptocurrency, decentralisation refers to multiple entities that conduct decision-making processes without a central point of authority. As such, decentralised systems do not have a single point of failure since they do not act with one central authority making the decisions.
For example, one of Bitcoin’s main principles is decentralisation, and the network itself is decentralised, using a conglomerate of nodes that act accordingly to make sure the network is able to run. This allows for more security because there is no single point of failure. For example, if a centralised network’s central authority fails, the whole system fails. This is unable to happen in a decentralised network, as it does not have one focal point that can fail.
Key Takeaway
Decentralisation refers to a system that has no central point of authority. It is a body of multiple entities that conducts decision-making processes without a central point.