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Definition: decentralized processing


Processing that takes place in multiple locations. Contrast with centralized processing. See distributed processing.

Old and New Meanings
Decentralized processing implies that each location may be doing the same type of processing but on different data; for example, each branch in a large company processing orders for its local customers.

In contrast, the world of decentralized finance (DeFi) and crypto does not have that meaning. Each node in a DeFi network is generally processing the same data or nearly the same data. The decentralized term is used to contrast crypto with centralized banks and government agencies. See DeFi, blockchain, decentralized storage and crypto glossary.




Decentralized vs. Distributed
Decentralized processing implies isolated islands of processing. Although "distributed processing" may refer to the very same thing, it often implies a fault tolerant architecture. See distributed processing.