The term centralized defines a structure that relies upon a central governing body for maintaining operation and decision-making within the entire system. Centralized structures operate with a hierarchy of commands resulting in quick and efficient decision-making ensuring marginal errors.

Centralization is also adopted in cryptocurrency is the concentration or control of the exchange under a single authority (central government). A centralized exchange (in crypto) means that the currency exchange took place featuring a central party or government. This third party manages all your transactions and looks after your crypto assets.