Decentralisation in cryptocurrency refers to the distribution of control across a network rather than relying on a central authority like a bank or government. Unlike traditional fiat systems, where central banks regulate money supply and transactions, cryptocurrencies operate on blockchain technology, where no single entity has full control. Instead, transactions are verified by a decentralised network of nodes (computers), and consensus mechanisms (like Proof of Work or Proof of Stake) ensure security and transparency.

Why is Decentralisation Important?
Censorship Resistance – No government or institution can freeze accounts or block transactions, ensuring financial freedom.

Security & Trust – Decentralised networks are harder to hack or manipulate since there’s no single point of failure.

Reduced Intermediaries – Eliminates banks and payment processors, lowering fees and speeding up transactions.

Inflation Protection – Many cryptocurrencies (like Bitcoin) have fixed supplies, unlike fiat money, which can be printed excessively.

Global Accessibility – Anyone with internet access can participate, empowering the unbanked.

However, decentralisation also brings challenges, such as scalability issues and regulatory concerns. Despite this, it remains a core innovation of crypto, offering a transparent, trustless, and democratic alternative to traditional finance.