The term decentralization, when talking about blockchains, describes the network architecture. It infers that the network is not localized to central server-based computation. Blockchains are typically a globally distributed network of nodes and/or miners. Emergent properties resulting from cryptographically-secured decentralization are immutability and permissionless-ness.
What are the benefits of decentralization?
Decentralizing user records across a variety of industries would prevent fraud potentially worth billions of dollars. This would protect corporations from being liable for damages caused by stolen user data. Users would be able to have more peace of mind knowing that their private and financial lives are kept safe away from prying eyes. By decentralizing the creation of money, how it is stored, and transmitted, computer scientists have provided the world an alternative financial system that is not dependent on a small group of elected leaders. This financial system offers a contrast to the highly inflationary policies enacted by central banking agencies worldwide.