Definition ∞ Decentralized solutions are systems or applications that operate without a central authority or single point of control. These solutions distribute power and data across a network of participants, promoting transparency and censorship resistance. Blockchain technology is a primary enabler of such architectures.
Context ∞ Decentralized solutions are central to the digital asset ecosystem, aiming to reshape traditional financial services, data storage, and identity management. They present alternatives to centralized intermediaries, promising greater user control and reduced reliance on trusted third parties. The current discussion often concerns the trade-offs between decentralization, scalability, and regulatory compliance for these novel systems.
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