Centralization is the process of concentrating control in a single authority. Thus, “Centralized” is the term that refers to a state of a system which is governed (completely or partially) by a single ruling entity.

     Whenever an important decision must be made, who is the party whom makes the final decision? In a centralized environment absolutely all decision making and control is within the hands of single party.

     This control within the hands of a single central party helps with the organization and coordination of a structure; however it simultaneously leave the non-controlling parties at the mercy of the central party. 

     Centralized environments forces its users to trust the ruling party. Additionally, because centralized environments have a single point of command, it also has a single point of failure. Centralized environments are notorious for being hacked.

      Related Terms:



BTC: bc1qcskmel9llhrdqj3arxyqnennx4ashvfutlreyy
LTC: ltc1qa0fj4lcu5365rep50aza5fqqvx8ef0afemh6s5
ETH: 0x071D72dbc48ad2Fe35daE256eCF0834C5dde688c
DASH: XgXHqVyJiQNdVVszH9cnqCP4uWcP8tVxdK
BNB: bnb1mau4j8kry0jgw45ufy69hvhd0k04llet8fk2p6

Welcome To The Crypfo Initiative!

There was an error while trying to send your request. Please try again.

Crypfo.info will use the information you provide on this form to be in touch with you and to provide updates and marketing.
Join the Leaders of the Digital Economy.
Gain Access to Specialized Crypto Asset Insight before anyone else.