Write the definition of Decentralization and Centralization in your own words. Explain these two systems in your own words.

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The process of centralization refers to the concentration of planning and decision-making activities within an entity to a single leader or site. In a centralized company, the head office retains decision-making authority, while all other offices receive orders from the main office. The head office houses the executives and consultants who make critical decisions. Similarly, in a centralized government system, decision-making power is concentrated at the top, and all lower levels of the organization structure obey the directives coming from the top.

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Decentralization is a form of organizational structure in which top management delegated decision-making and day-to-day activities to middle and lower levels of management. As a result, top management will focus on making big decisions with more time on their hands. Businesses always feel the need for decentralization in order to maintain operational efficiency.

Explain in your own words the difference between decentralization and centralization system Or Compare both in own words.

What Does Centralization Mean?

Before I go into detail about what centralization means, consider some of the systems you use on a daily basis. A centralized authority controls everything you use, including Facebook, YouTube, Twitter, your bank account, and pretty much everything else.

This means that a third-party intermediary is needed to verify a data transaction on your behalf. Let me illustrate this further using Yahoo as an example.

Assume you want to send a private email to a friend with some amusing photos from a party. You log into your Yahoo account, compose the text, attach the photos, and send it to your pal.
Consider what information Yahoo has on you right now.

When you first signed up for a Yahoo account, you had to include personal details including your full name, ethnicity, and birth date. Following that, each and every email you send is stored on Yahoo's centralized servers.

This means you have to trust Yahoo to keep all of your information confidential. You must also assume that they will not use this information for their own gain, such as selling it to advertising companies.
As we all know, this isn't always the case. Yahoo was hacked in 2015, and it was one of the biggest attacks in history. A group of hackers were able to gain access to their centralized servers, giving them access to millions of accounts' private emails.

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Since Yahoo uses centralized servers, they were able to gain access to all of this information. If this single point of failure is compromised, the entire network is jeopardized.
To be clear, I've listed three major drawbacks to a centralized structure.

You must trust that the centralized organization can protect your data. They have complete control over the system and your information.
Data is at risk if the main servers are hacked.
These problems don't just affect Yahoo; they affect almost every system you've ever used.

What Does Decentralization Mean?

I figured I'd clarify some of the key features of a decentralization concept before giving you some real-world examples. To begin, blockchain technology was used to allow decentralization.

The Bitcoin client, which was developed in 2009, was the first blockchain. Transactions are not authenticated by a centralized authority when someone transfers Bitcoin to another person.

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Instead, anybody can link their machine to the Bitcoin system to assist in the verification of a fund transfer. A “node” is a computer that is connected to the grid, and there are thousands of them working together to keep the network running.
This implies that in order to hack the network, hackers will have to gain control of every single node, which is nearly impossible. This also means that sending and receiving money on the blockchain is the easiest and most stable method.

It's important to note, however, that decentralization isn't limited to financial transactions. Decentralized systems can be used in almost every industry in the world, as I'll demonstrate further down!

The second thing to note is that to communicate with a decentralized system, people do not need to mark themselves. They actually use a private and public key to keep their identities hidden.
Also, a blockchain-based decentralized system is not governed by a single authority and is not supported by any centralized government or nation-state. Instead, anyone who wishes to use the device has equal access to control. This makes society more just by removing influence from large corporations. Another example is Steemit which is a social media blockchain which makes communication easier without a third party.

Write five Advantages and five Disadvantages of decentralized and centralized system.

Advantages of Centralization

*A well-defined chain of command
A consistent chain of command helps a centralized organization because everybody in the organization knows who to report to. When junior employees have questions about the company, they know who to contact. Senior executives, on the other hand, have a well-defined strategy for delegating authority to workers who excel in particular roles.

*Vision that is laser-focused
When a company uses a centralized management system, it can easily concentrate on achieving its vision. There are open lines of communication, and the senior executive will convey the organization's mission to workers and assist them in achieving it.

*Cost savings
A centralized organization follows standard operating procedures and processes, which helps to minimize office and administrative costs. Since the company's key decision-makers are based at the corporate office or headquarters, there is no need to send more departments and equipment to other locations.

*Decisions are implemented quickly.
Decisions are reached by a small group of people in a centralized company and then conveyed to lower-level managers. The decision-making process is more effective when only a few people are involved so they can discuss the specifics of each decision in one meeting.

Disadvantages of centralized systems

*Leadership by bureaucrats
Employees are only supposed to achieve results according to what the top executives appoint them in centralized management, which resembles a dictatorial style of leadership.

*Using a remote control
The executives of the company are under a lot of pressure to make decisions for the company, and they have no influence over the implementation process.
When documents are sent to and from the head office, there are gaps in work as a result of centralization. Employees depend on information transmitted from the top, and any delays in relaying the records would result in a loss of man-hours.

*Employee dissatisfaction
When employees are able to take personal initiative in their jobs, they become more committed to the company. They will show off their imagination and provide suggestions for how to complete those tasks. However, there is no effort in work in centralization because workers conduct activities that are conceptualized by top executives. Due to the rigidity of the work, this limits their ingenuity and commitment to the organization.

Advantages of decentralized systems

*Diversification and Growth
Every product division gains enough autonomy to exercise their artistic flair as a result of decentralization. Top-level management can foster healthy competition among divisions in this manner.

*Making Fast Decisions
Another critical factor to consider when weighing the benefits and drawbacks of decentralization is that decisions are made and carried out by approved staff. As a result, quicker and more reliable decisions are made that are informed by the real-world situation.

*Communication is effective
With decentralization, management spans a broader range, resulting in fewer hierarchical levels. This improves the efficiency of the contact system.

*Better Control And Supervision
Lower-level supervisors have the power to change production plans and job assignments. They may also take disciplinary action and demand that their colleagues be promoted.

*Human Needs Satisfaction
Decentralization is a powerful tool for achieving our basic needs of autonomy, strength, prestige, and status.

Disadvantages of Decentralization

*Coordination is difficult.
When discussing the benefits and drawbacks of decentralization, it's important to remember that each division has a significant amount of autonomy.

*External Factors
The labor movement, market insecurity, and government interference can make it difficult to reap the full benefits of decentralization.

*Expensive
As a result of decentralization, every employee assumes responsibility for the organization's success, and they work harder to meet all of the organization's goals. In exchange, they must be compensated more, which can be very costly to the company.

Which one is better for Business/trading and why? (write in own words)

Any company's organizational structure has a significant impact on its performance. Having the best model for your business and, most importantly, your company would boost your performance dramatically.

There are two major structural models from which to choose. The term "centralisation" which we know refers to a situation in which one or a limited number of people at the top are trusted to make major decisions and steer the company's course. Individuals at various levels of the organization have some control in making business decisions on how they want things to be run, which is known as decentralisation.

Both models have benefits, but I believe that decentralisation is the best option for any company. Here's why

First of all, the decentralized model allows for a large number of people to have unique skills and experience that they can apply to a variety of business operations. A diverse management team means that an organization has the expertise to cope successfully with a wide range of business circumstances.

Giving managers the freedom to make their own decisions makes them feel important and gives them a real say in the company's direction. When they take initiative and introduce their own ideas, they become more invested in the company and have the freedom to make better use of their expertise and experience.

Decentralised organizations can make decisions much more easily. This is due to the fact that managers can make decisions without having to go through the chain of command, which takes more time and effort. When it comes to addressing the needs of specialized clients, this is critical.

Expansion is critical for a rising company, and using a decentralized business model will make it much easier. Adding a new unit in a new location is relatively simple since that location will quickly learn about and begin to fulfill the unique needs of the local market. That is, assuming you have a capable manager in charge of the new acquisition.

How do you know if a blockchain is decentralized or not? You can describe any method, but in your own words.

It's simple to tell whether a blockchain token is centralized or decentralized. There are enough resources on the internet we can use. I will limit myself to etherscan.

Go to google page then type https://etherscan.io/

Look for the search button above and input or paste the token which you want to check

In my case study i used tether which has a contract address 0xdAC17F958D2ee523a2206206994597C13D831ec7, after putting it there click on search

Click on contract

now check Contract Source Code (Solidity) below in coding, area if you see

In the coding region, you can see any information about blockchain, so here's one point: if you see it, it means it's centralized, so I'll show you if my token is decentralized or centralized.

When you see words like destruct only administration, self destruct in the coding area for a token, it means the system isn't fully centralized. As a consequence, determining whether a token was decentralized or not was easy.
Since the following words were found, we may conclude that tether is fully centralised

Conclusion
Thanks so much @yousafharoonkhan for this wonderful lecture on Decentralized and Centralized system , Advantages & Disadvantages , Which one is best for business?. I have really learnt so much from this and has made me do some extensive research on them. With the above stated advantages and disadvantages of both centralisation and decentralisation, i firmly stand for decentralisation and it is also the best option to deploy in your business for better growth and profit. Thank you for this lecture.

@yousafharoonkhan