What is the decentralization of blockchain?

Blockchain decentralization eliminates the need for a central authority or intermediary to oversee or validate transactions. Instead, power is distributed among a network of independent nodes that maintain a complete copy of the blockchain. Each node has equal rights and responsibilities within the network, preventing any single entity from gaining undue influence.

To ensure that all nodes on the blockchain agree on the same state of the ledger, decentralized protocols employ consensus mechanisms such as Proof of Work (PoW), Proof of Stake (PoS), or Byzantine Fault Tolerance (BFT). These mechanisms ensure that new blocks and transactions are validated and appended to the blockchain accurately and reliably.

Decentralized blockchains provide unparalleled transparency as all transactions and data are recorded on the public ledger. Every node has access to a complete and immutable record of the blockchain, enabling transparency and auditability of all activities. This prevents any individual or organization from manipulating or altering data without the knowledge of the entire network.

Centralized systems are prone to hacking and security breaches as they often have a single point of failure. In contrast, decentralized blockchains distribute data across a vast network of nodes, making it virtually impossible to compromise or alter the entire system. Malicious actors would need to control a majority of the nodes to launch a successful attack, which is highly improbable.

Decentralized blockchains are not subject to censorship or interference from external entities. Transactions and data recorded on the blockchain are immutable and cannot be selectively deleted or altered by governments, corporations, or other malicious actors. This protects users from having their activities monitored or suppressed.