Decentralization is the process to distribute power, functions and decision-making away from a single and centralized authority to a decentralized system. When an organization adopts decentralization, the control over various elements shifts from a high-level instance down to a lower hierarchical level.
On this level more individuals are included in the process which distributes control over resources and decision-making.The primary benefit of decentralization is to increase expertise and equality among individuals who can make decisions. People who are close to the operational side of a business can get more accurate information and therefore make better informed decisions.
It also encourages diversity and opinions which often leads to increased creativity. In terms of cryptocurrencies the participants in the network step in the place of a bank. Instead of relying on a central institution which can control the entire system the individual participants can control their own part of this network.
This gives them freedom to do whatever they want, provided they follow the rules. Disadvantages could be that this system can get inefficient as decision-making can lead to a longer process because of the amount of participants.