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3.INTRODUCTION

Here are some definitions concerning Centralization and Decentralization thanks to Professor @yousafharoonkhan. This knowledge is key to put it into practice at the time of structuring or restructuring a system and thus use the best method to achieve the objectives.

Question No. 1

Write the definition of decentralization and centralization in your own words. Explain these two systems in your own words.

Centralization: It can be said: that Centralization. - It is a system that concentrates the power of decision making on one person or on a very small group of handpicked people. This is done to obtain better results in the organization of a work.

Decentralization: In this case, power is distributed among groups of people (communities) to carry out planning. Everyone's opinion is heard. No single voice is required for making decisions that are for the benefit of the people.

**Explanation: **
Taking into consideration the irregular situations in the world regarding, centralization of power, it is clear that decentralization would be a solution. All the power would no longer remain in the hands of one or groups of people who hinder the benefits of humanity.
As far as technology is concerned, absolute control is observed in the networks and also in the financial system, and this does not demonstrate efficiency. This is called centralization. They should be decentralized for the benefit of the population.

Question 2:

Explain in your own words the difference between decentralization and centralization system or compare both in your own words.
Differences between Centralization and Decentralization.

As we already know in centralization the monetary system is regulated by the central bank where monetary policies favor a minority. On the other hand, in the decentralized system a user community is sought, as is the case of cryptocurrencies, where no laws are dictated. In decentralization the system is governed by the laws of computer science, mathematical laws and cryptography, this generates trust. Communities have the same community benefits.

States issue amounts of money and devaluation occurs. It is an unsustainable system that ends up collapsing and harming the people. In the decentralized system no more currencies can be issued than what is in the protocol and people use this system of value exchange according to their choice without imposition.

The state as said is hermetic. The communities use their form of payment backed by laws that they make and change to their convenience subjecting the people to them. In contrast, in the decentralization system the community is governed by a system of consensus, free and transparent based on trust.

The State (representing centralization) has absolute control and all figures belong to it. In decentralization, data are distributed in nodes and are freely accessible. Intervention of decision-making bodies and imbalance is avoided. Decentralization can have growth, modifications to certain alterations in order to improve user services, so that the model is efficient.

Question no 3:

Write five advantages and five disadvantages of decentralized and centralized system.

Decentralized System

Advantages

Less bureaucracy. Solutions do not require approval from a central power.
Resources are managed according to the needs of the institution.
There is a higher level of interaction and sense of responsibility among the members of the institution.
Those responsible for each instance must have high levels of training and specialization, which improves efficiency, confidence and therefore better customer service.
There is efficiency in decision making because it does not require a central power.

Disadvantages

Communication is important because tasks may present problems in their execution.
The operability of the department can present failures if the personnel is not trained.
The volatility of cryptocurrencies generates problems at the time of investment.

Centralized System

Advantages

Order is achieved within the organization thanks to a clear structure and hierarchy.
Those who occupy the highest hierarchy must have a specialized preparation that corresponds to the position they occupy.
The people who have the responsibility in the company to control and make decisions have a clear vision of the operation of the company.
The economic resources of the State are managed by the power (government).
People's roles are well established, therefore communication within the organization is good.

Disadvantages

Work motivation is reduced in people at lower levels.
Leadership does not exist in the lower levels.
They must follow orders from superiors.
It is difficult to improve conditions, since there is no communication between the central power and the subordinate.
In terms of efficiency, it is not efficient to depend on a single person because, if the organization or central node fails, the whole network collapses.

Question no 4:

Which one is better for business/trade and why? (write in your own words).

For business the best system would be Decentralization. The operative is less bureaucratic and responsibilities are distributed at levels close to the area where the demand occurs. This streamlines quick problem solving such as, product or service improvement to meet customer needs.

Question 5

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

1.-

Source: Capture of my Pc https://etherscan.io/

2.-

Source: Capture of my Pc https://etherscan.io/

3.-

Source: Capture of my Pc https://etherscan.io/

4.-

Source: Capture of my Pc https://etherscan.io/

In the coding function, the terms administration, destroy or self-destruct were not found, which means that the currency is not entirely centralized.

CONCLUSIONS

Decentralization is part of a system that has benefits in favor of users.
When control of power is in the hands of only one, the economic benefits are not well distributed.

Thank you very much for the class, as very interesting. These are terms that we should keep in mind.

Greetings from Venezuela.

@suralla