Centralization vs Decentralization

You have heard about **decentralization** a lot in Web 3.0 topic. Let's understand centralization and decentralization in deep 👇

Decentralization is a core tenet of Web 3.0

Centralization

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

Useful:

• 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

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

Useful:

• 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 “gatekeepers.” Ideally, the cost of participation is very low.