Decentralization enables censorship resistance for bitcoin, so funds can be sent peer-to-peer. For example, a donor in the U.S. can send BTC to an activist in Russia, without Putin’s government, or another central authority, interceding. It’s also a necessary condition to attain the programmability with which decentralized finance (DeFi) protocols can automatically execute settlement and collateral contracts. If a third party has control over the system, it has the power to intervene, which means there’s no guarantee of automaticity. Programmability is lost.
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