# Decentralization

### Decentralization & Distribution

Decentralization is the process of distributing decision-making power, and/or responsibility away from a central authority. It can be applied to organizations, governments, or even technology systems, like computer networks as in our case. At TransferChain, we have a robust decentralization plan that will happen in 5-7 years, TransferChain network will reach almost 100 nodes in order to achieve absolute decentralized decision-making. All Nodes will be full nodes and only institutions can run nodes in this permissioned network. Our network design aims to improve the liveness, fairness, correctness, and safety of the network.

In order to assess decentralization, we evaluate the subject through four separate layers:

Social decentralization represents the diversity of computers, individuals, organizations, etc. that join or are able to join the relevant blockchain network.

Monetary decentralization represents the balance of value distribution within blockchain networks in which there is a circulation of economic value, and this economic process bears significance for the functioning of the network.

### Architectural Decentralization is Key

Architectural decentralization as the decision for centralization or decentralization should be (and often is) made in line with the objective of the design at the very beginning, it represents the perspective adopted by the blockchain network at a fundamental level on how this matter is handled.

Protocol-level decentralization represents the perspective adopted by the blockchain network on the decision-making layer with regard to the mechanism of decision-making, how the rules are determined, implemented, etc.

This multi-layered analysis indicates that a large body of evidence is required before we can declare a blockchain network as “decentralized.”


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