Decentralization ensures no single entity controls the system. In a decentralized blockchain, all nodes hold the same copy of the data and must agree before any changes occur. This increases transparency, removes reliance on a middleman, and resists censorship or manipulation. Decentralization also enhances uptime since no central point can go down.

Example For Video Understanding: Filecoin is a decentralized file storage system where users rent storage space across a peer-to-peer network instead of relying on one cloud provider.