Decentralized Mining

Definition ∞ Decentralized Mining refers to the process of validating and adding new transaction blocks to a blockchain network through a widely distributed and independent participant base. Unlike centralized mining operations, no single entity or small group controls a significant portion of the network’s processing power. This distribution of mining power strengthens network security and censorship resistance. It is a core tenet of many proof-of-work cryptocurrencies, upholding their permissionless nature.
Context ∞ The concentration of mining power in large pools or specific geographical regions often raises concerns about the true decentralization of networks like Bitcoin. Debates frequently revolve around methods to promote broader participation and prevent single points of control. Future developments may involve protocol adjustments or new mining algorithms designed to resist centralization, ensuring the long-term integrity and security of decentralized digital assets.