Decentralized funding refers to a financial system where resources are allocated without a central authority, often using blockchain technology. This approach allows individuals or groups to raise funds directly from a community, bypassing traditional banks or financial institutions. It promotes transparency and reduces reliance on intermediaries. One common method of decentralized funding is through Initial Coin Offerings (ICOs) or Decentralized Autonomous Organizations (DAOs), where participants can invest in projects or initiatives. This model empowers creators and fosters innovation by enabling diverse funding sources, making it easier for new ideas to gain support and traction in the market.