SteemitCryptoAcademy | Season 2, Week 1 - Homework | Decentralized & Centralized Systems

Hello Everyone,
Hope you all are doing good. It is my first post in the SteemitCryptoAcademy.
Here is my homework post assigned by @yousafharoonkhan.

TOPIC: Decentralized and Centralized system, Advantages & Disadvantages, Which one is best for business?

https://images.app.goo.gl/1YKER3tfG9NdLgqz6

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

source

DECENTRALIZATION:

Decentralization of a blockchain means that the power of that blockchain is controlled by everyone involved. It is not controlled by one authority. To better understand this, you can take a look at the diagram above.

In the above diagram, all the individuals are interconnected with each other having an independent power over that system. One can make their own changes rather than a single authority having the power.

Making it more easily, let's take an example. We all know that there are two ways to govern a country.

1.Democratic
2.kingdom

In Democracy, the people have the power to make the decisions and in the kingdom, the whole country is governed by only one person.

So relating the example with our topic, Decentralization is more like a democracy.

CENTRALIZATION:

Centralization is the opposite of decentralization. In a centralized system, all the users are connected to one terminal of the blockchain controlled by the higher authorities. Simply put, centralization is like a kingdom governed by a single individual rather than every individual in the system.

For more clarity, see the diagram above.
In the diagram for centralization, all the nodes are connected to a single terminal placed in the center. The center is called the higher authority over which the system has total control. Under that authority an individual works.

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Explain in your own words the difference between decentralization and centralization system Or Compare both in your own words.

If we compare decentralization and centralization, the major difference is consulted with the power and control over the system. A decentralized system gives an advantage of control over the system by an individual and centralized system the owner makes all the decisions.

Taking about the reliability and security, the decentralized blockchain system is more secure and reliable than the centralized system as in the decentralized system the chances of being hacked is very low as compared in the centralized system. In the centralized blockchain system, all the data can be edited by the higher authorities at any time and a user of that blockchain system can cause huge losses.

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

ADVANTAGES OF DECENTRALIZED SYSTEM:

1. A decentralized system has the advantage of faster response and decision time.

2. The chances of hacking in the decentralized system are zero which I think is the best benefit.

3. In the decentralized system the workload on the upper management is lower as all the individuals have power over the blockchain system.

4. The data stored in the decentralized system is not editable which gives an upper hand to decentralization.

5. The relation between the user's increases in the decentralized blockchain system.

DISADVANTAGES OF DECENTRALIZED SYSTEM:

1. Coordination in the decentralized system is a big problem as decision-making is delegated in a decentralized system, it is difficult for all the segments to work in the same manner to meet the common goal.

2. Increased administrative costs due to duplication attempts.

3. The crime rate in a decentralized system is greater due to the transfer of funds.

4. Taking about cryptocurrencies, as the prices fluctuate the cost is not stable in a decentralized system.

5. An emergency decision is not possible in a decentralized system.

ADVANTAGES OF CENTRALIZED SYSTEM:

1. The centralized system makes reporting easy.

2. Following the decision of the same order is an advantage of a centralized system.

3. All the users have to work in the same vision chosen by the top authorities.

4. Implementation of a decision is faster than in a decentralized system.

5. Clarity in decision-making is also an advantage of a centralized blockchain system.

DISADVANTAGES OF CENTRALIZED SYSTEM:

1. The major demerit of a centralized system is that it is far less secure than a decentralized system. Hackers can easily break through the server.

2. In a centralized system does not allow the user to make any decision resulting in frustration.

3. Equality between the user is also a big problem in this blockchain system.

4. The opportunities are limited for the users to give any suggestions.

5. The biggest disadvantage of the centralized system is that the owner can edit the data of any system at any time.

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Which one is better for Business/trading and why? (write-in own words)

As we have discussed the merits and limitations of both, let's see which system is better for a business.

The choice of a system for the business depends on the business or the organization you are running. As we discussed both in detail, both have some advantages and disadvantages too. We should choose the system depending upon the nature of the business.

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

STEP 1:

Go to google search for the currency you want to know about whether it is centralized or decentralized.

STEP 2:

Then you will search for the blockchain you want to check. For example, I am taking Bitcoin for this lesson.

STEP 3:

After choosing a currency put the address of that blockchain in the search bar.

STEP 4:

After entering the address the result for that blockchain will occur. Now, to the bottom of the screen. You will find a contract option. Click that contract option and the code will appear on the screen.

STEP 5:

From the code, you can conclude that whether the blockchain is centralized or decentralized by searching the coding terminology** function destruct**. It is an easy way to find whether the blockchain is centralized or not.

I attended the lecture and here is my homework post.
Thank you @yousafharoonkhan for elaborating on the lesson. You have done a great job.
I hope you all like my homework post.

#yousafharoonkhan-s2week1 #cryptoacademy #blockchain #decentralized-centralize #steemxclusive #pakistan