Hi friends, In this Today lecture from @yousafharoonkhan I learn the difference between centralised and Decentralized systems and many more things. Like advantages, disadvantages and how to check any platform is centralized or decentralized through Ether Scan.

Those details I understand through this lecture, Thanks for making a wonderful lecture for us.

Question Number 1:-

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

CENTRALIZED SYSTEM:-

For knowing what is a centralized system and how it works, the best example is our government.

Because our system works in a centralized way so for getting any orders 📑 or solving any issues we need to wait until getting an order from higher officials. Without this order, our work not started yet.

_{Centralized System}

In centralized system decision-making power having only some high officials, those orders communicate to a lower level. Here there is no chance to take our own decision, must need to depend on others.

Example: Best example for understanding the centralized system is our Banking Industry 🏭 , here for taking any decision we need orders from higher officials, not possible to take our decisions alone.

DECENTRALIZED SYSTEM:-

Here decision making power transfer to different persons, different organization rather than one single person.

_{Decentralized System}

In this case, decision-making rights do not hold in one single person, a lot of authorities get decision-making rights. So our issues also solve very easily. Not get any time wastage.

Examples: our crypto industry 🏭 is the best exams for understanding how decentralized system work. Here we can take our decision as per our needs, no one not possible to control us.

Question Number 2:-

Difference between decentralization and centralization system?

There is a lot of difference between centralization and decentralization systems.

Here my view expresses in form of a comparison table.

_{Centralized Vs Decentralized}

Question Number 3:-

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

In both Decentralized and centralised systems having some advances along with disadvantages too. But based on our needs we need to choose which system is a good choice for us.

Advantages Of Decentralization

• In a decentralised system, we can reduce the burden on decision making. Because here decision-making power distributes to ground level persons.

• Getting more freedoms for taking our decision.

• Here every person working very responsible way.

• Work complete very faster here.

• Here we get faster and healthy communications.

Disadvantages of Decentralization

• Here lower-level person also possible to decide due to this we can expect some wrong results due to lack of knowledge on the particular project completely.

• Here each person have the rights to take their decision due to this for solving one issue we get multiple answers. From this selecting the correct one is very difficult.

• For making a decentralised system we need to invest more money in comparison to a centralized system.

• Here not possible to control others decision.

• Possible to misuse their authority. This is a big disadvantage in this system.

Advantages Of Centralized System

• Here we get Remote-control to access all activities by one person.

• Possible to reduce investment cost.

• Based on the vision of project team members work.

• Single Decision so get effective results.

Disadvantages Of Centralised System

• Bureaucratic leadership. Due to this Employees not get the rights to express their opinions here. Only they need to follow orders from their officials.

• Here work complete very slowly. Because information needs to pass the lower level, after reaching orders only, Then start work.

Due to this, we get a delay of work here.

• Here employees not possible to prove their knowledge and creativity.

• Not expect knowledge growth here.

Like we see some advantages and disadvantages in each system.

Question Number 4:-

Which one is better for Business/trading??

In my opinion, it depends on each person's view but coming to me I choose Trading.

In trading, we earn money easy but at the same time, we lose very easily.

But here we can start the trading journey with 10$ also, for business we need huge investment need a proper knowledge on what type of business we need to choose and a lot of permissions we need to get from Government and lot of paperwork need to finish.

But in Trading we are the boss, we can take our decision at any time but need knowledge in this sector.

Crypto Trading giving a lot of opportunities but we need to gran those at the perfect time.

Question Number 5:-

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

We can easily find those details using https://etherscan.io/.

For Example, here I checking the BUIDL project is Decentralized or not.

For this just copy its contract address from here

Now paste it in Ether scan.

Now I click on Contract tab.

I get this.

Then after I check it's Solidity Source Code.

Here I don't see function destruct only administration, self destruct like those words.

Means BUIDL is decentralized platform.

Like that we can check any platform is centralized or decentralised very easily.

Hope I finish all Homework Tasks correctly.

Thanks For Reading My Post!