Crypto Academy Week 9 - Homework Post for @yousafharoonkhan.

Hello Professor,

Thank you so much for introducing us to the first class in week 1 for season 2 of the Steemit Crypto Academy. You made the class so understandable. I wish you all the best and a great future in your new role as a Professor.

I am very happy to be part of this week class and here is my home work solved and presented below.

Question 1.
Write the definition of Decentralization and Centralization in your own words. Explain these two systems in your own words.

Solution.

Decentralization in simple terms is defined as a system or an organizational structure where power and authority are distributed equally to all parties and individuals involved. This means that there is no central decision-making body and all parties involved have a say when it comes to running and the operationalization of the system.

Centralization is the exact reverse of decentralization, centralization is a system of operationalization where power and authority are delegeted to a central point. This is where a particular group of parties or individuals are charged with the power to make decisions and plans on behalf of the entire parties and individuals involved in the system.

looking at these two systems in detailed, decentralization system is mostly operated in a very large scale and all the blocks or entities are connected by a chain to form a blockchain. In this system, very entity has the right and power to determine and control how the system should run or operate, hence power and authority is delegated to all parts of the system. This promote individual participation and involvement and it can bring about easy decision making process, one good feature about this system is that, it is reliable since data of the system is manage and control by everyone on board. This helps to eschew manipulation of important data which promote traspirancy.

Now, let us look at centralizasion system. In the centralization system, decisions and plans are made by a central decision making body and pass it down to the system or organizational hierarchy. There are standardised procedures in this system since each branch of the system derives its power from a central point, hence this brings about uniformity in the system. Talking more about centralization system, it is also a system where top managers has the sole right to control all activities happening in the system. They decide what to do and what not to do, they are seen as the power source of the organization.

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Question 2
Explain in your own words the difference between decentralization and centralization or campare both in own words.

Solution.

The difference between centralization and decentralization and their comparism can be seen in several ways of which include the points listed below.

1. In organizational hierarchy and power. Both systems have different organizational structure in terms of administrations and rights. In the centralised system, power is delegated to a particular group of individuals or a unit to control the affairs of organization or system and all decisions pertaining to the organization is decided by this unit. But in the decentralised system on the other hand, all employees or entities in the organization has a right to decide what should happen and what should not happen in the organization. Power is shared equally in this system so all users or blocks controls the affairs on the blockchain.

2. Now let us look at the two systems in terms of scale. Because of the one power source in the centralised system, it is mostly applicable in a small scale as compare to the decentralised system. This is because a small fraction of people run and control whatever happens in the organization which makes it very difficult to effectively run a very large scale. In the other hand, decentralised systems can operated and are operated on a very large scale. This is possible because there is no only one power source, everyone on the system has the power to operate and manage the afairs of the organization. On the decentralised system, entities or blocks can cut across so many countries since it has no only one controller.

3. Reliability is other point we can talk about when it comes to both systems. Data of the organization is control and manage by a single unite in the centralised system, this put the company at risk in case of data manipulation by that unit since it is the only unit that know and manage the organization data. Also, there is a high possibility that data can be hacked in the centralised systemand makes the centralised system less reliable compared to the decentralised system . This is the reverse for the decentralised system since every one on the system gets to know and manage the data. It is also very difficult for data managed in the decentralised system to be hacked by scammers since is not centralised and this also makes the decentralised system more reliable compare to the centralised system .

4. The centralised system is standardised whereas the decentralised system is not standardised. Looking at the centralised system, there is uniformity in its operations since all entities or individuals are accountable to one unite. This forces everyone in the system to conform to a set of rules and regulations given by the higher management, this brings about a sense of direction and uniformity in the system. In the decentralised system, freedom of expression is very high. This makes individuals to decide on what to do and what not to do since every right is given to them, there is no uniformity in this system because of variabity of chioces.

5. One can also talk about simplicity and ease to use when it comes to these two systems. when it comes to liquidity issues, centralised system is preferred as compare to decentralised system. It is very easy for assets to be converted to liquid in the centralised system it is managed by a few individuals and requires a few steps or process. It is not the same story in the decentralised system, this is because it comprises of all users and a lot of steps are involved when it comes to liquidity.

Question 3
Write five Advantages and five Disadvantages of decentrlized and centralized system.

Solution.

Advantages of decentralized system

1. There is a sense of belonging since everyone is involved in the decision making process and managing the organization.

2. It promotes individual empowerment.

3. There is much transparency and accountability.

4. Freedom of expression of individuals in the organisation is quaranteed.

5. Data for the organization can not be edited and manipulated by some few individuals.

Disadvantages of decentralised system

1. Efficiency of individuals on this kind of system is questinable since there is no supervision.

2. It is not standardised since there is no rules and regulation governing individuals on this system.

3. Crimes are rampant on this system.

4. There is no uniformity on this kind of system since everyone does whatever he wants and do not use standardised procedures.

5. It is very risky to trade on this kind of platform since no one moniters what goes on.

Advantages of centralised system

1. Decisions are made and implemented or executed quickly on this kind of system.

2. There is easy contol and accountability.

3. Individuals or employees have well defined roles to play on this platform.

4. This system also ensures proper accoumtability and efficiency of individuals.

5. This system reduces internal conflict among individuals since only a few people makes the important decisions.

Disadvantages of centralised system

1. It increases burden on management or a few group of people.

2. It does not allow all individuals involvement in decision making process.

3. This system can bring about lack of employee loyalty since they are not involve in decision making.

4. There is no individual freedom in this system.

5. Power is only concentrated on a small group of people.

Question 4
Which one is better for Business/trading and why? (write in own words)

Solution.

In tackling this question as to which one of the two systems is good for business, we would have to consider some factors of the business. These are, the nature of the business, the time horizon of the business and the capabilities of the business, so we see that it depends on the type of business that will really determine the type of system to use. Talking of the nature of the business, we ask the question how big is the business that is the scale of the business. It would be advisable to go in for the decentralized system if your business is of a bigger scale , this is to ensure proper accountability since it is very difficult to supervise everything by your self. But if the business is having a small scale, centralized system can be preferable.
Now let us focus on the time horizon or frame and the capabilities of the business, how long will you run the business? and can your business stand for a long time? These are the questions and factors of a business that would determine which system to apply. If you want to take total control of your business then you can go in for the centralized system but if you what to disteribute power and authority then go in for the decentralized system. So it depends on the nature of the business, the time frame , and capabilities that determine which system is better for it.

Question 5
How do you know if a blockchain is decentralized or not? You can describe any method, but in your own words.

Solution

Inorder to know if there is a blockchain or whether a cryptocurrency is decentralised or not we will carefully follow the steps listed below.

Step 1: open google page and type and search etherscan.

Step 2: when the site is open, check on the far top left corner and paste the company token contact address in the space provided.

Step 3: at this point, I will be checking if Teleport (TPT) blockchain is decentralised or not.
I will then paste the Teleport(TNT) token contract address which is 0xc596bd09d652827b0106292d3e378d5938df4b12

Step 4: click on contract below

Step 5: now check contract Source Code(Solidity) below in coding area.

The blockchain information is displayed in the coding area in detailed, from the infomation in the coding we are searching for the words function destruction only administration, self destruction, if these type of wording are found in the coding area about any token, it means the system is not fully centralized.

from the practical illustration above,Teleport(TPT) token is decentralized since I can not find any of the wording in it.
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I will like to end by saying a big thank you to Professor @yousafharoonkhan for this wonderful class and homework, I have really learnt a lot and am wishing to meet you next week, Thank you.