Centralization and decentralization are two opposing systems or activities. What's the difference between the two?

What are Decentralization and Centralization?

A centralization is a form of system or activity in which all decision-making or authority is centralized in one entity. So there is one entity that governs the course of the system as the banking system.

Within the current banking system, banks become the center of the system. All transactions made in the banking system must be through the bank and recorded data there.

Decentralization is a form of activity in which authority and decision-making are shared with many entities within the system.

Blockchain technology decentralizes all data to multiple entities, allowing all entities in the network system to participate without the central entity's approval.

Differences Between Decentralization and Centralization

In centralization, there is one entity that acts as the center of the system and can regulate the entire system. All activities performed by non-central entities must first go through central approval.

Unlike decentralization, its authority is divided into all entities that are still in the system. There are no central entities, so when one entity wants to do or decide something, there is no need to seek approval from the main entity.

Advantages of Decentralization

1. Uniformity in management

2. Non-central entities are lightened by not creating policies

3. More organized system development

4. The simplicity of the rules

5. Minimizing conflict due to dissent

Disadvantages of Decentralization

1. Longer decision making

2. More complicated bureaucracy

3. Control center entity

4. Easy to hack

5. Reduced freedom of innovation

Advantage of Centralization

1. Faster decision making

2. Simple bureaucracy

3. No dominance of one entity

4. Increase system speed and flexibility

5. More complex to hack

Disadvantages of Centralization

1. Uniform management

2. Every part of the system assumes responsibility in policy

3. System maintenance is complicated

4. All entities in the system must be of

Which is more profitable, Business or Trading?

Trading today may already be categorized as an individual business. But compared to conventional businesses or trading in the real sector, there are fundamental differences between them.

There is no need for significant capital To start trading. This is not true when opening a restaurant. For example, it certainly needs considerable money.

Trading can be easily accessed on the internet from a variety of devices. This provides better flexibility than conventional businesses. Trading can be done anywhere, at home, in restaurants, cafes, or even in the garden.

Simply with electronic devices such as laptops, desktop PCs, or smartphones. Plus, the time to do it is very flexible. You can trade at any time.

No Need for a place

In the clothing business (for example), as the business grows, the volume of goods sold will increase, the warehouse will be needed. Yet to sell the necessary, proper store, which must be rented or build its own.

Trading doesn't need that. However, profit and capital increase are not required storage because there are no physical goods requiring warehouses.

How to determine a Centralized or Decentralized Blockchain?

Two components make up the blockchain, namely block, and chain. The data and information on the computer are divided into blocks and connected by a 'chain.'

Blockchain is technically a series of blocks with digital information. Each block has a hash or a character set that collates various details on the block.

All data and programs are artificial across blockchain networks. The computer is connected to the web, and then the computers execute the program together.

If one of the blockchain computers is turned off, then all users in one network are affected. In other words, blockchain is a decentralized system. It can even be said that a large-scale computer formed from communication between several computers.

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

It is very easy to see blockchain projects that use a decentralized system. I will give an example of how to see the system on JST (Just) .
the way to see it is by searching for JST coins on coinmarketcap, then copying the contract address that JST has.

Because JST is included in the Tron ecosystem, I use tronscan to view Jst contracts.
Paste the jst contract that you copied earlier then search for it.

After all the data about Jst appears then select the contract section.
Now in this section we can see that JSt is a blockchain project that has a decentralized system

Conclusion

In conclusion, only one entity regulates the system's course in centralization, so it isn't easy to innovate in the system. While decentralization decision-making is left to many entities, making it difficult to hack, and blockchain technology is one type of decentralized system. With this technology, trading is more profitable than business because the costs incurred are less with more significant profit.

Cc:

@yousafharoonkhan

Jangan Lupa Bahagia