Decentralization refers to the dispersion of power or governance among participants. It is often a remedy for corrupt centralized control. It demonstrates unparalleled security against outside forces.
Decentralized networks are challenging to compromise because there is no central database. They are also permissionless. A small circle of valuable stakeholders cannot add or remove participants.
The downside of decentralized blockchains? Reliance upon consensus and lack of support.
Fully decentralized technology experience a lag in governance and decision-making compared to its centralized counterpart. You pay Coinbase fees for the convenience of its customer support (lol) and some guarantee of protection over your money (though tenuous).
Centralization allows products and marketplaces to make faster decision-making.
That's great for innovation. But humans are more fallible and fickle than code. As a limit to vulnerability, most web3 tools and protocols operate somewhere within the (de)centralization spectrum.
The debate between centralized and decentralized systems will only intensify as mainstream users enter the crypto arena with a craving for convenience.