Decentralisation, a term often used in the context of blockchain technology, carries three distinct meanings. Firstly, architectural decentralisation refers to the number of physical computers that make up a system. Secondly, political decentralisation denotes the number of individuals or organisations controlling these computers. Finally, logical decentralisation refers to the interface and data structures of the system.
The internet, for instance, is architecturally decentralised but logically centralised. Blockchain technology, on the other hand, is both architecturally and politically decentralised, but logically centralised. The ideal of a ‘world computer’ is a system that is logically decentralised.
Decentralisation provides several benefits, including fault tolerance, attack resistance, and collusion resistance. However, achieving decentralisation is challenging, with trade-offs in efficiency, development, and user experience.
While many champion decentralisation as a moral principle, its real value lies in the specific contexts where the benefits outweigh the costs. It is crucial to understand the different types of decentralisation and their implications to make informed decisions in the blockchain space.
Go to source article: https://medium.com/@VitalikButerin/the-meaning-of-decentralization-a0c92b76a274