Definition ∞ ‘Network Centralization’ describes the degree to which control and decision-making power within a blockchain network are concentrated among a small number of entities or participants. In a highly centralized network, a few nodes or stakeholders may wield significant influence over protocol upgrades, transaction validation, or governance decisions. This contrasts with the decentralized ideal of distributed control, where power is spread widely among many participants. Assessing network centralization is important for evaluating a blockchain’s resilience, censorship resistance, and adherence to its core principles.
Context ∞ The ongoing debate surrounding network centralization often focuses on the distribution of mining power or validator stakes in different blockchain protocols. Key concerns include the potential for censorship, collusion, and single points of failure when control is overly concentrated. Developments in consensus mechanisms and governance models are continually being scrutinized for their impact on decentralization metrics and overall network robustness.
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