Re-Posting or Re-Sharing Crypto Academy Week 9 - Homework Post for @yousafharoonkhan

Hello everybody, Hope you all are fine and in good health!

NOTE: Read my comment below on this post!

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My this post is a Homework Task assigned by professor @yousafharoonkhan which is about Centralization and Decentralization.

Source

I hope that I will get some good grades from professor, wish me best of luck!

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Decentralization

Decentralization presents a notion that every person is his own boss in the other words you can say everyone is in charge and power of decision-making lies with him rather then a single person or a political group has the authority of making decisions every individual has a say in the matter.

If we come towards describing it as a system we can term it a system of people because it supports the notion that everyone has the right of making decisions. Decentralization has no single master because not a single particular person or group is in charge of the system take.

For example, the franchise model employed by KFC. Although a single entity is the ultimate owner but each franchise is independent in there for making the decisions when needed.

Centralization

Centralization is the opposite of decentralization, in this the power of deciding is in the hand of single individual or group and the opinions of people around the person in charge don’t really carry weight.

If we come towards describing it as a system we can term it a system of a single authoritative personality or a group monarchy or dictatorship is the best example of this system because both in monarchy and dictatorship the decision-making powers of any kind lies with a single person.

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Difference between Decentralization and Centralization system

Centralization	Decentralization
Single person or group holds the decision power	Decision power lies with the people
The flow of information always vertical top to bottom	Free flow of information (nor top down nor bottom up)
Single person or group is accountable for the end result	The accountability of end result is shared
It has high liquidity	Prone to conflict of decisions
Upper management decisions are always followed	Suitable for large scale organization and businesses
Eliminates the notion of wrong transfers	Wrong financial transfers can be made
Third party involvement	Reliability is high
Volatility is low	The system is highly volatile

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Advantages and Disadvantages of Centralization

Advantages	Disadvantages
Definitive chain of Command	Low security prone to hack
It is less costly	Third party involvement
Easy reporting	Stability levels are low
Easier Accountability	Data modification
Higher liquidity	Power lies at the top
Ease of use	Low reliability
Authentication is requiring to enter the system	No equality

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Advantages and Disadvantages of Decentralization

Advantages	Disadvantages
Highly secured	No definitive chain of command
No third-party involvement	Costly
Data modification is impossible	Low liquidity
Highly scalability	No authentication is required to enter the system
Less burden on upper management due to devolution of powers	Low stability
Power lies at grass root level	High volatility

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Which is best and Suitable for businesses

If we talk about which of two discussed systems is suitable for our business then the choice of system really boils down to nature of business we are running. In a centralized setting, we have to follow the decision of higher authority or management and self-vision goes out of the window. So, if this type of setting is suited for your business then you can go for centralized setting.

Some people dont like the felling of looking over there shoulders all the time, so if you are a go getter and can make quick and effective decisions on your own you should go for a decentralized setting.

How to know if a blockchain is decentralized or not?

As mentioned by the professor that, With some simple steps, We can easily find about any blockchain that if it is Centralized or Decentrlized.

Step 1:

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

Step 2:

After opening the given site, paste the company token contact address.

As I am going to check about UniSwap then I will past it's contract address which is "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984" in the address bar of etherscan

Step 3:

Now click on Contract

Step 4:

Check Contract Source Code below in coding.

To find about any search contract if it is decentralized or centralized, we will look into the code for the words like function destruct, administration or self destruct. If these words have been found, then the system is centralized and if not found then it is Deecentralized.

Like here in the case of UniSwap, I didnt find such words. So, we can say that Uniswap is Decentralised.