![Crypto Terms Glossary: What is Decentralized/Decentralization? Crypto Terms Glossary: What is Decentralized/Decentralization?](/img/158/426/what-is-decentralizeddecentralization-sm.webp)
Decentralization is in many ways the central and defining characteristic of blockchain technology. Applying decentralized processes and tech can reduce or even eliminate the role of intermediaries across industries and use cases. For example, by removing banking institutions from financial instruments, decentralized finance (DeFi) platforms can distribute profits and governance to users and the wider community. On an even more foundational level, a decentralized network crowdsources consensus, making it much harder for any one entity to control or censor the data that transacts through the network. However, many experts believe that achieving optimal decentralization can tend to decrease network throughput.