Steemit Crypto Academy Season 2 Week 1 Task By @abdulhalim100: Centralization And Decentralization System
Greetings to all my fellow steemians. It is another season of the steemit crypto academy after a short two weeks break. It is good to be back, to continue our study on the cryptocurrencies. We had a nice and great lecture on centralization and decentralization systems by professor @yousafharoonkhan. I am here to present my homework task on the topic we discussed.
It is very good to know what centralization and decentralization systems are so far as cryptocurrencies are concerned.
When it comes to blockchain and cryotocurrencies we term decentralization as the act of controlling and making decision by a centralized individual, organization or a group to a distributed network or system. Trust in one another by participants reduces as the level of decentralized systems tackles, and discourage their skill to apply authority over each other in ways that retards the performance of the system.
In centralization it involves an exchange platform where one can buy or sell digital assets through a mediator who you trust to monitor the transaction and secure the assets on your behalf. Tracking of deals is not done in centralization. It requires one to submit his/her personal information for verification in this type of exchanges. However, if it is a company engaging in this type of exchange, you need to give out your corporate information to the exchange system just to verify your account.
Below are some of the differences between decentralized and centralized crypto exchange systems;
1. In centralized crypto system exchange it is the platform that has the most control over your account while in decentralized crypto system exchange it is the user who has the most control over his own account.
2. Also in centralized crypto exchange the user is charged (fees) for using the platform but in decentralized crypto system exchange there is no charges (fees) or the charges charged will be minimal.
3. Centralized crypto system exchange is highly known than decentralized crypto system exchange.
4. There is license needed from the authorities in centralized system and it is easy to regulate as well whilst there is no license needed by the authorities in decentralized system and it is complicated to regulate.
5. Centralized system takes less than 1 minute to execute orders making it faster is faster and decentralized system takes up to 1 minute to execute the same order making slow when it comes to orders executing.
Choosing centralization as your system of crypto exchange, there are some advantages you are expose to and some of these advantages are listed below;
1. Centralization brings in economies of large scale which results in bulk purchasing and savings in transportation expenses.
2. It facilitates evaluation when same managements are used for all portions of the enterprise.
3. It facilitates smooth and consistency in day-to-day working of the organization.
4. Centralization also co-ordinate its activities in various portions of the organization to prevent portions being independent on their own policies.
5. Centralization complies with standard methods that guides the organization to help reduce the administrative cost.
Centralization may only be useful up to some level and also under some particular instances. As it keeps on going it creates challenges in its working and also decrease the development of an organization. Below are some disadvantages of centralization system;
1. In centralization there is no scope for specialization, where decisions are taken only by an individual who may not be a specialist in all the portions.
2. There is an over burden on few people in the organization due the system giving all the responsibilities to some few persons and they remain burdened with regular work.
3. Centralization destroys individual initiative since it is only one person that takes all the decisions and decides how to pass them on.
4. It slows down the functioning of the organization since it is only one man that implements decisions and his absence keeps everything on pending.
5. There is space between customers and policy-makers. Customers only meets officials who don’t have the authority to take decisions.
Below are some advantages one gets when he/she picks decentralization crypto exchange as his system of exchange;
1. Decentralization reduces burden on the top executives and eases them from performing various duties.
2. There is facilitation of diversity of products, activities and market in decentralization.
3. In decentralization there is executive development since all the executives will get the chance to work on their skills by taking actions which will prepare them for their managerial roles.
4. It promotes motivation and improves morale when all employees get involved in decision making.
5. Decentralization enables better control and supervision as the assistants at the lower level has the power to decide on his own.
Decentralisation can be remarkably profitable to its customers but it can also be terrible excepting that it is correctly created and regularly being checked, for the betterment of the organization as a whole. Below are some disadvantages of decentralization;
1. In decentralization one cannot follow uniform policies since each manager has the power to frame his own policies.
2. There is more pressure on segmental leaders to recognize profit at any cost in decentralization.
3. There is problem of co-ordination in decentralization as power is dispersed all around the organization.
4. There is the need of a qualified personnel in decentralization if not decentralization is useless.
5. Decentralization needs a more financial burden but a small organization can’t manage to pick talented individuals for various segments.
From the look of things and from my understanding on centralization and decentralization systems I will go in for decentralization as the better crypto exchange system for business.
I chose decentralization because in decentralization organizations structures their individual duties for making business decisions and moving the business together as one. Decentralized organization work as a team where each individual has the authority to make his/her own business decision at his/her level in the organization. Likewise in the centralized organization where it is only one person who is capable of making decision for the organization, meaning if such a person is not there the organization sizes to function and everything will be suspended which isn’t good for a business organization.
To determine whether a blockchain is centralized or decentralized i used the bellow steps as learned from the lecture;
Step 1
Search etherscan on google
Step 2
The homepage of etherscan will open for you.
Step 3
Paste company coin contact address in the search box and now check the VRGold (VRG) blockchain to see whether it is decentralized or not.
Step 4
You now click on contract and check on the contract source (Solidity) below in coding area,
From the coding area you can see every details about the blockchain, if it appears that way meaning it is centralized.
This is an interesting and useful topic the professor has taken us through. I have learned a lot on this particular topic and can now give a detailed information on both centralized and decentralized systems. This lesson has taught me how to check whether a particular blockchain is decentralized or not. And I have also seen that both systems can never substitutes of one another. Thank you all for going through my work.
First respected student Thank you very much for taking participate in Steemit Crypto Academy Season 2, Week 1 course class..
here i would like to say that decentralized bussiness has wide meaning in its deepth so this time crypto exchange decentrliazed is very much high lighted in interest
thank you very much for taking participate in this classs
Ratting : 6