Centralization vs Decentralization in Cryptoassets

• Centralization and decentralization can be applied to cryptoassets, networks, and exchanges.
• Centralization refers to the extent to which a cryptoasset is issued, operated, managed, and regulated by a central party.
• Decentralization refers to the lack of a single controlling party for a cryptoasset, which can make it less sensitive to inflation and allow it to be used as an alternative to regulated currency.
• Because decentralized cryptoassets lack central oversight, they are more prone to money laundering-related offenses and fraud.

Test your knowledge on centralization and decentralization in the context of cryptoassets, networks, and exchanges. Understand how centralization and decentralization impact the regulation, control, and security of cryptoassets.