واژهنامه
Centralization
۱۴۰۵/۱/۲۷
Centralization means that control, decision-making, or data within a system is concentrated in a single entity or small group. In the context of cryptocurrency, it is generally viewed as a risk or flaw — the opposite of the decentralized ideal.
Centralization vs decentralization
| Centralized | Decentralized | |
|---|---|---|
| Control | One entity | Many participants |
| Single point of failure | Yes | No |
| Censorship resistance | Low | High |
| Examples | Banks, exchanges | Bitcoin, Ethereum |
Examples in crypto
- Exchanges — centralized exchanges (CEX) hold user funds; if hacked or insolvent, users lose money
- Mining pool concentration — if a few pools control >50% of hashrate, they could theoretically manipulate the chain (51% attack)
- Token ownership — if founders or VCs hold most of the supply, they can dump the price
- Developer control — if one company controls protocol updates, they can change rules unilaterally
Centralization in mining
Mining has faced centralization concerns because:
- ASIC manufacturing is dominated by a few companies (Bitmain, MicroBT, Canaan)
- Large mining farms have cost advantages over individual miners
- A handful of mining pools often account for the majority of hashrate
