Centralization is the consolidation of a person’s or group’s control, authority, and access. In the context of blockchain, centralization refers to the level of privilege and distribution of nodes verifying and managing the network. Blockchains that rely on nodes concentrated in a small 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, as well as promote censorship and data control.
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