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2/10/2025 9:47:04 AM (GMT+1)

How to avoid centralization in decentralized networks: key principles

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In the world of blockchain and decentralized networks, the issue of centralization remains relevant. Too much concentration of power in the hands of a few participants can reduce the security and trust in the system. To avoid this, it is important to adhere to several key principles:

1. **Node diversification**: Distributing nodes across geographical regions and different participants helps prevent centralization. The more participants in the network, the harder it is to control it.

2. **Public and accessible consensus mechanisms**: Transparency in the choice of transaction validation mechanisms, such as PoW and PoS, contributes to greater involvement and reduces the risk of monopolization.

3. **Inclusivity**: Platforms should be open to new participants to reduce the influence of large players.

4. **Decentralized finance (DeFi)**: Supporting autonomous protocols and smart contracts, which eliminate the need for trusted intermediaries, makes the network more resilient.

Modern developments in cryptography and blockchain technologies are aimed at fighting centralization, which contributes to improving transparency and trust in cryptocurrency ecosystems.


This material was prepared by Khachatur Davtyan, developed and translated by artificial intelligence.



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