The term 'decentralization' in blockchain technology refers to distributing control and ownership across a network rather than relying on a central authority. This architecture enhances transparency, security, and resilience as transactions and data are recorded across multiple nodes. Decentralization eliminates single points of failure and reduces the risk of fraud or interference, making it a key feature of blockchain systems. It encourages trust among participants and enables peer-to-peer interactions without intermediaries, revolutionizing various industries.