Centralized

Involvement of a third party to aid the completion of transactions. Especially a third party that has the power to affect the outcome of the transaction.

The term ‘centralized’ in cryptocurrency best describes how transactions are not only performed by a seller or buyer but also by another—a third party. Examples of a centralized exchange in cryptocurrency include Kyrrex, Kraken and GDAX, to mention a few.

Due to centralized exchanges, issues regarding incomplete or unsuccessful transactions in cryptocurrency are averted. Hence, miners are prevented from worrying about the safety and success of their transactions.

Using a centralized avenue for payments in cryptocurrency involves trusting the platform to secure your funds, protect against malicious attacks, and let you use your money when you need it.