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Week- week1 season 2

Professor- @yousafharoonkhan

Course- steemitcryptoacademy

Topic - decentralized and centralized system, advantage and disadvantage

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Hello steemians am writing in response to the assignment task given by the professor. I appreciate your dedicated time on this post

Decentralization

I’ll start my explanations about decentralization with this diagram.

source

As you can in this diagram the decentralized system is scattered, no body giving instructions for others to follow everybody is making it own decisions.

Anything that is decentralized is not controlled by any organization, group or institution. Decentralization gives an individual on the blockchain power to make its own decisions. In decentralized system their is no owner it is independent and can exist as long as computers exist. This statement means that different computers are connected together to form blocks making it hard to destroy for you to destroy a decentralized system you have to disconnect all the joined computers which is not easy to do.

centralized

Back to the above diagram you find out that their is a dot at the center that dot means the head or owner who want others to abide in his own decision. In a centralized system all users are linked to a central network which is the owner. Here are the owner will store a data for the users to access. A decentralized system can be set up easily.

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2

the difference between decentralized and centralized system

In this two type of system their are difference which will look at the few major once. The differences will be looked at in terms of the followings

• decisions
• information
• burden
• transactions

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In terms of decision : In centralized system it’s only one person that makes decision that is the head while in the decentralized system the decision making ,authority are delegated throughout the organization.

In terms of information : when it comes to information, in the decentralized it’s open and free while in centralized it’s is vertical.

In terms of burden: in the decentralized it’s shared among many level while in centralized burden is carried by one group only.

In terms of transaction: a decentralized system, transaction can be carried out on the ledger by anybody while in a centralized system it’s only the people who have identified themselves that are permitted to transact on the ledger. To identify your self in a centralized system you have to fill the KYC form during your registration.

In centralized system ownership of asset is not fully grantee as the exchange might close one day while in decentralized you are fully in control of your asset.

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3

ADVANTAGE AND DISADVANTAGE OF CENTRALIZED AND DECENTRALIZED SYSTEM

ADVANTAGE OF CENTRALIZED SYSTEM
Let look at the advantages in the following terms

• focused vision : a centralized system will always want to be focus and fulfill its vision with ease.

• improve in work quality: since its a centralized system and their is a higher authority who will supervise and make sure their is improvement on the quality of work

• in centralized system let use the bank as a case study when their is a wrong transfer of funds the management can quickly get rid of it .

• reduced cost: a centralized system sticks to a quality and follows the method that guid the organization, this helps to reduce office and administrative cost.

DISADVANTAGE

• since it rotate around one person to make decision this can destroy individual initiative which may take the organization higher.

• centralized system does not give room for customers to meet with those who make laws rather meet with those who do not have powers to take decision.

• organization can be slowed down reasons is because the power to decide what happens lies in one person so if he is unavailable issues may be kept pending.

• it can get Hacked easily their by resulting to loss of customers asset.

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ADVANTAGE OF DECENTRALIZED SYSTEM

• Quick in decision making

• it is difficult to hack a decentralized organization so users funds are save

• decentralized system does not store your private keys the control of the account remains with you.

• it is not controlled by any government

DISADVANTAGES

• it’s is difficult to trace transaction done under a decentralized system. transaction made cannot be traced and canceled if done with the wrong person due to lack of KYC every thing about a decentralized transaction is anonymous

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4

WHICH ONE IS BETTER FOR BUSINESS/ TRADING

Every one has its own choice and also this question will be answered base on the nature of the business you want to carry out for instance if am a crypto trader I’ll use the centralized exchange more reason is because I want to sell quickly when I see that I have made a profit, but if am an investor who want to hold for long term I’ll prefer the decentralized blockchain, it is more advice able to store your assets in a decentralized system if only you want to hold for long term since decentralized exchange does not store your private keys and can not be Hacked easily.

So choosing a decentralized or centralized for business is based on the nature of the business .

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HOW TO KNOW IF A BLOCKCHAIN IS DECENTRALIZED OR NOT

First you open your browser and search for etherscan.io and a page like this will be displayed

Them at the top written search you search for the block chain you want for This lesson am searching for oxbitcoin.

I taped it them went down to copy it’s contact address displayed

I copied the contact address went back to the top were they said search to past it

I pasted the contact address and search for it them I scrolled down to see we’re I can see contact and I clicked on it

Them I scrolled down to see if it’s decentralized from the example given by the professor oxbitcoin is decentralized

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I attended the leacture and here is my home work post I believe I have done this assignment the way I understood it and have written in my own words Thanks once again!!!