Decentralization Bounds

Definition ∞ Decentralization bounds refer to the limits or constraints on the degree of decentralization achievable within a blockchain network or distributed system. These bounds consider the practical trade-offs between security, scalability, and decentralization itself. They help define the spectrum within which a system can operate while maintaining its core properties. Understanding these limits is crucial for evaluating network robustness.
Context ∞ News concerning blockchain upgrades or new protocol launches often addresses decentralization bounds, particularly regarding consensus mechanisms and governance structures. Debates frequently center on whether a protocol sacrifices decentralization for performance or vice versa. This concept is central to assessing the long-term viability and resistance to censorship of digital asset systems.