What is a decentralized institution?

Answer 1

A decentralized institution is an organization or system that distributes authority, control, and decision-making across multiple independent nodes or participants rather than concentrating it in a central authority. This structure often enhances transparency, resilience, and participation, as it allows for diverse contributions and reduces the risk of single points of failure. Examples include decentralized finance (DeFi) platforms and blockchain networks, where participants collectively manage operations and governance. Such institutions typically rely on technology to facilitate trust and coordination among members.