Centralization is a phenomenon characterized by a concentration of authority, activity or control to a single entity, place or system. Centralization can happen to private and public organizations as well as in systems and structures. This phenomenon usually occurs when individuals or organizations tries to create an environment where they can seemingly move faster, more efficiently, encounter less resistance and incur less cost.
This can be seen in many organization such private companies like Google and Facebook, in the military organization of nations and in governments around the world. Although there is some merit in centralizing information, authority and decision making in terms of what I have already stated above it has many weaknesses that we should consider.
It can be a central point of failure in which the whole organization or system fails when this central authority or point is compromised or unable to do its function. Moreover, giving too much power to a central authority or organization means we are exposing ourselves to censorship and even possible subjugation and tyranny. Centralizing resources will also lead to monopolies in business or government that are, more often than not, abusive in nature and seeks only to protect the centralized status quo in which they have all the power, authority and control.
To give you a better understanding of what I am trying to say let me give you concrete example of the dangers when there is too much centralization of authority in an organization. I have participated in a Japanese Cryptocurrency Bounty in which I have a little run in with one of the helpers/admins for questioning how they run the discord channel and for arbitrarily kicking people just for the sole reason THEY CAN. Moreover, to show that this particular helper /admin can do whatever she wishes and has the power to do so she purposely breaks the rules set by her fellow admins.
The funniest part is when I warned them that I will bring up the matter to the head of the organization which infuriated this helper and commanded that any concerns should be addressed to helpers like her EVEN CONCERNS ABOUT THEMSELVES. This statement almost threw me out of my seat, obviously there is no check and balance in this organization. I was able to report the incident to the founder and he has apologized on her behalf. Unfortunately the same helper/admin was able to ban me for expressing my opinion publicly when a fellow Steemian-blogger ask me why I think there is something amiss with the people running the discord channel.
As you can see unchecked authority or power can easily be used to subjugate people especially those who are not in agreement. This can be used for personal vendetta, coercion or pushing ones own agenda which is, more often than not, for ones self gain or self preservation and not for the good of the organization.