What is the concept of decentralization in cryptocurrency?

Decentralization refers to the distribution of control and decision-making across a network rather than being centralized in a single entity or authority. In the context of cryptocurrency, decentralization means that no central bank, government, or financial institution controls the currency or its transactions. Instead, cryptocurrencies like Bitcoin and Ethereum operate on decentralized blockchain networks, where transactions are verified by a distributed network of nodes (computers) using consensus mechanisms like proof of work (PoW) or proof of stake (PoS). Decentralization enhances transparency, security, and resistance to censorship, as there is no single point of failure that could be targeted by hackers or authorities.