What Is Decentralization?

image source

For me decentralize can be said to mean an organization or a firm inwhich the lower level managers make important decision.

It refers mostly to evenly distribution of power and authority at every level of management.

When it comes to blockchain we say it is decentralised if it's informations is not stored at a point or one choiced location but spread across a network of computers

What Is Centralization?
image source

Well unlike decentralization, Centralization is a process where the concentration of decision making are in a few hands. All subjects and decisions of the lower levels are all subject to the approval of the top.

Any organisation in which high level executives makes all the decision and pass them to the lower levels for implementaion is a centralized entity.

In blockchain technology we say it is centralized if its information are stored in a central location.

Difference Between Dencentralization And Centralization?

Well i think the difference between this two is pretty clear from my above definition.

Centralization mainly refers to concentration of power at the higher level while decentralization deals with even distribution of power even down to the lower levels. In centralization, top managements retain maximum authority, the middle and lower management possess little or no authority, but in decentralization authority is divided at every level.

Also thinks that unlike in a decentralized systems where it could be believed that managers have more freedom of actions, in a centralized system managers have less freedom of actions.

Adavatages Of Centralized System
1. Uniformity in functioning
2. The use of more highly specialized staffs
3. Clarity about source of decisions
4. Greater control over the effieciency of work produced
5. Suitable for small scale organizations

Disadvatages Of Centralized System
1. Decision made takes much time to be implemented
2. Workers in a Centralized system often gets bored with work.
3. Storing of sensitive information at a central location
4. Middle and lower levels are without authority
5. Heavy Workload

Advantages Of Decentralized System
1. Suitable for large scale organisation
2. It boost individuals confidence and sel-reliance
3. Lower management levels learn to depend on their jugment, since they have freedom.
4. Communication flow is open and free
5. Hacker have little or no chance in accessing sensitive infiormation since it's not being stored centrally but across a network of computers.

Disadavantages Of Decentralized System
1. High cost of operation
2. There is no uniformity in policies and actions
3. Not suitable for small scale organization
4. Decision making is relatively slow
5. Self-centered attitude by various departments

Good For Business

On a Peronal note i think which in paticular between Centralized and decentralized that is good for business depends on what type of business one intend runing.

Like i have previously stated i think the seize of the firm or business will determine which is better. While centralization is much suitable for a smale scale business, and not much efficcient in large scale business and decentralization being most suitable for a large firm or organization is not suitable for a small scale business. So i think it depends on the seize of the business we intend opening.

If is a small scale business then centralization is better but if it's large scale business then decentralization is much suitable. Ofcourse that is my personal opnion.

Also on a personal note when it comes to blockchain i would go for a decentralized blockchain rather than a centralized one. Why? I think i would want to go for decentralized becauses of its high level security. It would be reassuring to know my data is safe. And with decentralization i have full control unlike centralization.

How To Know If A Blockchain Is Decentralized

Well i would be using or expalaining with the method you use in your class @yousafharoonkhan

First off open your browser and type Etherscan.io

When you do it will take you to this page

Then input your contract address on the search bar and search.

Then we come below and we will see contract. Click on it

When it opens we go down and check contract source code.

Now failure to see things as self-destruct, function destruct,etc means it is decentralised.

Thanks for reading through.