What is Centralization?

Centralization refers to the consolidation of control, authority, and access by a person or group. In a blockchain context, centralization refers to the level of privilege and distribution of nodes verifying and managing the network. Blockchains relying on nodes concentrated in a limited geographical area are considered more centralized. Centralized blockchains may distribute profits to a select few rather than allowing all potential users of the system to participate. A centralized blockchain structure may also stifle equitable governance and decision-making processes and promote censorship and control of data.