Why a decentralized system is needed.

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When understanding why a decentralized system is needed, we first need to understand what a decentralized and centralized system is, a centralized system refers to a system with a central authority to control and carry out the affairs of the system, either a machine or an organization, and a centralized machine also has code connected to the server. main and store data to control activity on the server.

The centralized system in the organization also requires the government or a central organization to regulate the administration of affairs and management, Bitcoin makes everyone feel decentralized. Since then, we have learned to understand and appreciate the importance of decentralization, for the following reasons, a decentralized system is needed; Untrusted environment Centralized system always gives credit to users and makes transactions accountable.

Intermediaries / institutions are not needed in the centralized system in Defi, there is no need for financial institutions such as banks. You just need to trust the system instead of middlemen for a successful transaction.

Security.

All data is stored in one server, in a decentralized system, data is stored in several forms of nodes and uses consensus, and the stored data cannot be changed at each node, and at any time.

Governance.

Centralized systems also often employ methods of managing individuals who handle system problems and handling individuals who dictate movement in decentralized systems, and each user can participate in governance and voting.

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