Decentralization Failure describes a situation where a digital system, despite its initial design principles, exhibits characteristics of centralized control or points of vulnerability that undermine its distributed nature. This occurs when a system intended to be decentralized falls short, often due to concentrated power in development, governance, or infrastructure. Such failures can manifest as a single entity gaining undue influence or a system becoming susceptible to central attack vectors. It represents a deviation from the ideal of distributed authority.
Context
Reports of decentralization failure frequently surface when a blockchain network experiences downtime, censorship, or a small group of entities gains excessive control over validation or governance. Debates often focus on the practical challenges of achieving and maintaining true decentralization, especially as networks scale or require upgrades. Watching for incidents where network operations are disrupted by a limited number of actors provides critical insight into the ongoing struggle to avoid centralization.
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