WHAT IS DECENTRALIZATION ?

One of the most exciting parts of blockchain technology is that it is entirely decentralized, rather than stored and controlled from one central point. This eliminates the need for central authorities and gives the control to individual user. Here is an explanation of how this system works, what it means for our future and why it is so important.

The decentralized nature of blockchain technology means that it doesn’t rely on a central point of control. A system without a single authority makes the system fairer and considerably more secure. Rather than trusting on a central authority to securely transact with other users, blockchain uses consensus protocols across a network of nodes, to verify transactions and record data. As a blockchain is a ledger of information, honest and accurate information is the key factor of this legger.

Comparision of centralization - decentralization

• Centralization is “the concentration of management and decision-making power at the top of an organization's hierarchy.” where decentralization is “the process by which the activities of an organization, particularly those regarding planning and decision-making, are distributed or delegated away from a central, authoritative location or group.”

• In a centralized system, decision making is slow where in a decentralized system, it is comparatively faster.

• In a centralized system, one or two people has the control and authority where in a decentralized system multiple persons have the power of decision making.

• Decentralized systems has more security compared with centralized.

• Decentralisation relieves the top executives of the burden of performing various functions but in centralized systems, executives has a lot to do.

• Centralized systems has proper coordination and leaderships where in a decentralized systems, sharing burdens and responsibilities are essential.

• In decentralized systems, as the system does not rely on a central authority, the fees that are normally collected by these organisations are no longer a factor. Therefore the fee is lower than centrilazed systems.

• In centralized systems, you can control the system in a good way or bad way. It depens on the executives. However, in decentralized ones, companies have less control.

• Decentralized systems are borderless, so sending money to somebody in your home town, or to someone on the other side of the world does not differ. However, in centralized systems, there are some borders.

• In decentralized systems, No third party can access your information. However, in centralized systems, it is really easy to access your information.

Conclusion

I hope this article gives you a view for decentralization and centralization. I personally believe, we need more decentralized environment in the future. World is envolving in that way too. Both centralization and decentralization have some advantages and disadvantages but I believe decentralized systems can improve itself too. Please feel free to let me know your thoughts in the comments section below!