Centralised

An organization that only has a small number of nodes in one place is said to be centralized. This organization is likely to hold a majority of its coin or token. In a centralized system, control and decision-making are concentrated in a single authority or a small group, which manages the system’s operations, assets, and governance. This structure contrasts with decentralized systems, where power is distributed across multiple independent nodes. In the context of cryptocurrencies or blockchain projects, centralization means that key processes, such as validating transactions or managing reserves, are controlled by the organization or a select few participants. While centralized systems are often faster and easier to manage, they can be more prone to risks like censorship, single points of failure, and reduced transparency. Examples of centralized entities include traditional banks, centralized exchanges, or DeFi projects where the development team retains significant control over the network or token supply.