Centralization vs Decentralization

Centralization vs Decentralization

Understand Decentralization and Centralization in detail


1 min read

You have heard about decentralization a lot in Web 3.0 topic. Let's understand centralization and decentralization in deep πŸ‘‡

Decentralization is a core tenet of Web 3.0



Centralization is a form of organizational structure where the decision making capability rests with the top management


  • Higher performance and easier to implement
  • Single point of failure: malicious actors may be able to take down the network by targeting the central authority.
  • Participation in the network is controlled by the central authority.



Decentralization is another form of organizational structure that functions by delegating decision-making capabilities to multiple teams across geographies.


  • Lower performance and more complex to implement
  • No single point of failure: network can still function even if a large proportion of participants are attacked/taken out.
  • Anyone can participate in the network; there are no β€œgatekeepers.” Ideally, the cost of participation is very low.

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