Definition ∞ Decentralization concerns refer to the apprehension or debate surrounding the extent to which a blockchain network or decentralized application truly operates without a central point of control. These concerns often arise when certain entities, such as large mining pools, influential developers, or significant token holders, exert disproportionate influence over a network’s governance or operations. A lack of genuine decentralization can compromise censorship resistance and security.
Context ∞ News reports frequently highlight decentralization concerns as a critical issue for the long-term viability and trustworthiness of various blockchain projects. Discussions often focus on the concentration of mining power, voting rights in decentralized autonomous organizations (DAOs), or the influence of venture capital firms. Addressing these concerns is seen as vital for maintaining the core principles of cryptocurrency and avoiding regulatory scrutiny.
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