The professor @yousafharoonkhan give us the homework about the Centralized and Decentralized System. They give us some question which answers I am going to write down. Thanks

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Question#1: Write the definition of Decentralization and Centralization in your own words?

Answer:

Centralization refers to the procedure in which there is planning and decision-making within a particular organization. The employees have a specific leader or location to report their tasks. If we talk about a centralized structure, the decision-makers are the head office. All other offices get the commands from that place. Apart from that, the executives and authoritative personnel are also part of that office.

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Decentralization refers to an organizational viewpoint where the hierarchy gives the decision-making powers and daily activities to the low-level managers. This allows the top-level management to focus on the major tasks with a larger time abundance. We have business houses that require decentralized systems to ensure efficiency within their procedures.

Question#2: Difference between a Centralization & Decentralization System?

Answer:

• A centralized structure requires one authoritative personnel to make and execute decisions to provide a certain direction to an organization. On the other hand, a decentralized structure requires a unit (a team) of different levels within a business to attain its goals.

• In a centralized system, the decision-making is done by the top management.

• In the decentralization system, decision-making is done by numerous levels. The decentralization system is comparatively faster as compared to the centralized system.

• Decentralization is open and free. On the other hand, the Centralized system is vertical.

• If we talk about the decentralized structure, the employees are more motivated in comparison with the centralized structure.

Question#3: Write five Advantages and five Disadvantages of a Centralized & Decentralized System?

Answer:

Advantages- Centralized System

• A centralized system is completely sequential. This means that everyone within every department knows whom to report their work to.

• Once the organization prioritizes the centralized system, this will enable them to create a long-term vision that will allow them to attain their goals with ease.

• A centralized system focuses on standardized procedures and methodologies which enables to reduce the administrative costs. These procedures work as a guide for the company to evolve themselves further.

• In a centralized system, the decisions are taken or finalized by a small group of people and they are carried forward to the low-level managers. This enables the people to get in touch with the problems in only one meeting.

• The better supervision of work in the centralized system increases productivity within the organization. The supervisors within each platform enable high-quality output.

Disadvantages- Centralized System

• A centralized system creates an atmosphere of dictatorship where the employees are expected to deliver results as per the higher executives’ demands.

• The executives have a lot of pressure on their shoulders. Their inability to decentralize the decision-making process increases the workload on them.

• A centralized system creates inefficiency within the departments as the employees may experience delays. The delays are because of reports going to and from the head office.

• There is no loyalty of employees when it comes to centralized systems. The reason behind this fragility is because there are no initiative tasks handed over to them as the employees perform tasks that are directed to them by the top executives. This minimizes their creativity skills.

• It is less secure.

Advantages- Decentralized System

• There is a motivation of subordinates within this system. This system ensures job satisfaction within the employees and increases their morale.

• In this system, all the products get adequate autonomy to experiment with their creative skills. This allows the hierarchies to create stiff competition within multiple departments.

• In the decentralized system, all the decisions are taken or finalized by the authority itself. There are interferences by other departments which brings efficiency within the results.

• As there is a massive span of management within the decentralized system, it leads to less hierarchical levels. This enables quick and efficient communication within different personnel.

• A decentralization system can add inertia to the growing business of people. This will allow them to open multiple business offices within different geographical locations as per their liking.

Disadvantages- Decentralized System

• As there is substantial autonomy within every single unit of the decentralized system, this makes it difficult to coordinate the complete business activity.

• There are numerous factors such as the trade union movement, market inflation, and the input of the federal government which will disable the authority to get the most out of this system.

• A decentralized system can only benefit those products that have broad product lines which will allow the autonomous units to flourish. This cannot be the case with small systems as they don’t have broad lines.

• Decentralized systems may also not benefit the low-level organizations as they don’t have experienced staff.

• In decentralization, every employee works harder than the other to attain the maximum that they can. However, their input may prove to be costly for the company to return.

Question#4: Which one is better for Business/trading and why?

Answer:

It truly depends upon the business that you are trying to create. If your business requires a system that is very easy to manage, a centralized system will be the one to go for. It will also allow the authorities to exert a great deal of control over the organization’s tasks.

If we talk about the decentralized structure, it will be difficult to implement. Therefore, it will disable the authorities to get the most out of this structure. However, it will offer benefits regarding security and redundancy.

Both of these structures come with their own advantages and disadvantages for a business or a trade. Therefore, you need to manage your business’ performance by looking at what the system can give. In this regard, centralized systems must have an appropriate capacity in them so they can avoid any risk of bandwidth issues.

On the other hand, a decentralized system must also be managed appropriately to minimize latency. The organizations must have a long-term plan which will allow them to design a network and then give it time to develop.

If we talk about the colocation data centers, both of the systems are eligible for their usage. Their ability to offer power, cooling, and sufficiency makes them an effective spot for centrally-located networks. There can also be an option that we can use all of the connectivity portals to make a multi-datacenter methodology. This will create a decentralized network that will use the data edge centers to look into those functionalities where the data is most collected.

Question#5:How do you know if a blockchain is decentralized or not? You can describe any method.

Answer:

• Step1: Open your browser and type https://etherscan.io/ in your search bar and hit enter.

• paste the contract address of the coin in search bar as shown in figure. I am using StormX smart contract.
  contract address of StormX: 0xbe9375c6a420d2eeb258962efb95551a5b722803

• in coding i did not find these words function destruct only administration,self destruct. So it is decentralized.