Decentralized Systems

Definition ∞ Decentralized Systems are networks or applications that operate without a single point of control or failure, distributing authority and data across multiple participants. Instead of relying on a central server or administrator, these systems utilize distributed consensus mechanisms to validate operations and maintain state. This architecture promotes resilience, censorship resistance, and transparency.
Context ∞ The discussion around Decentralized Systems is often framed by their potential to disrupt traditional centralized models in finance, governance, and data management. Current debates focus on the practical challenges of achieving robust decentralization, the governance models for these systems, and their scalability limitations. News coverage frequently highlights new decentralized applications (dApps) and protocols that aim to expand their functionality and reach.