Decentralization

Decentralization means spreading decision-making and control across many independent participants, instead of relying on a single authority. In decentralized networks like Bitcoin, thousands of computers—called nodes—work together to keep the system running and verify transactions. No single group or organization can dictate the rules on their own. By contrast, systems like the U.S. dollar are centralized, since the U.S. Federal Reserve has ultimate control over its currency.

For Bitcoin, decentralization brings important advantages. With so many distributed nodes, there’s no single target for hackers or bad actors, making the network more secure. Every node keeps a copy of Bitcoin’s public record—the blockchain—which provides transparency and helps everyone trust the system. Lastly, because nobody runs or owns the network, people anywhere in the world can participate, even if local banks or governments restrict access to traditional finance.