Hi @yousafharoonkhan, my name is @allbert and this is my first submission. I thought your class was great, I really like your teaching style and the way you explain things. I hope I can meet the expectations of your assignment.

So let's get started.

_{Image edited by me on Powerpoint.}

Question no 1 : Write the definition of Decentralization and Centralization.

Centralization

This term refers to those systems or organizations where power resides in a single person, or rather in a single authority figure. To be more specific, the decision-making power.

The entire decision-making flow goes through a single figure, usually represented through a manager, a boss, or a president.

Not only is decision-making centralized, but also information management and access to it is through a single node.

Decentralization

In contrast, decentralization refers to those organizations or institutions where decision-making power resides in various figures and different people. Not only the decision-making power is decentralized but also the power to execute projects since each person is autonomous.

To better understand decentralization we must also understand a term called Empowerment, which in a nutshell means giving power to the people. Thus allowing the people or communities to make up the organizations to self-manage.

Question no 2 : Explain in your own words the difference between decentralization and centralization system.

I don't want to be dramatic, but the differences between decentralization and centralization to me are like night and day. They are two different and contrary ways of organizational management, although the result they pursue is the same.

I believe that the main difference between both positions is the management of resources. To explain this, I would like to give an example of a documentary I saw years ago on TV about ancient Greece.

Many things are attributed to the ancient culture of Greece, among them Democracy. Democracy is the closest thing to Decentralization, in my opinion. In fact, the word itself (which comes from the Greek) means Power of the People, in other words, the power of decision making resides in several people who do not obey a central authority.

In the case of ancient Greece, this group of people where the power resided was an assembly of citizens who met to make decisions about the management of the financial resources of the state, thus deciding what direction the community would take. Everyone had the right to speak and the will of one individual was not above another.

_{Decentralization = Democracy. Source: https://www.caracteristicas.co/democracia-ateniense/}

On the contrary.

When I think of centralization I think of Autocracy, which is a form of government where all the power resides in a single person who has the power to modify the laws at his convenience and without limitations.

_{Centralization=Autocracy. Source: https://www.elconfidencial.com/television/series-tv/2019-04-24/juego-de-tronos-lannister-matarreyes-rey-loco-padre_1958090/}

To understand centralization a little more, we could think (contrary to ancient Greece) of an Emperor or a Dictator who manages the decisions, and even more important, the resources of the state without the people who are part of the community.

Question no 3 :Write five Advantages and five Disadvantages of decentralized and centralized system.

To answer this item I would like to add some characteristics that I have learned in the field of centralized exchange(CEX) and decentralized exchange (DEX), which explain very well the difference between both positions and link it to the overview of centralized and decentralized systems.

Decentralized System Advantages.

1.It works without intermediaries. No third party is needed to carry out operations, therefore, commissions are lower.

2.It is not necessary to entrust your funds to a company. Each person controls their own passwords and resources.

3. These systems are not regulated by any governmental entity. Participants have total control.

4.Because they work through Blockchains, it is more difficult (though not impossible) to hack. Their systems are more secure.

5. They have a wider variety of options (currencies and tokens) to perform operations.

Decentralized System disadvantages.

1.In decentralized companies, the process of decision-making in emergencies is slower. Decisions must be agreed by several people.

2.There is not always the unity of criteria or the same vision. This can delay the development of the organization.

3.In the case of exchange houses (DEX), they may sometimes have difficulties in exchanging cryptocurrencies to fiat currencies.

4.Transactions and operations are more difficult to regulate. This characteristic generates that these systems can be used to make criminal activities.

5. Asset prices in the market are more volatile and are not unified.

Centralized System Advantages.

1. In a centralized organization, the decision-making process in emergencies is faster. The decision is made by one person.

2.There is a single vision and a single criterion for all members.

3. Although they have more control over the participants' information, this backup is helpful under certain circumstances, such as the loss of a password or key data.

4. Greater regulation of operations. These organizations are more subject to government regulation, so they are less vulnerable to being used for criminal activities.

5.In the case of CEX, low market volatility due to price unification.

Centralized System disadvantages.

1- Basically someone else has control over your information and assets. Besides your destiny.

2- It is impossible the development of new projects by the community, everything happens under the order of a single person.

3- In the case of exchange houses (CEX), they are much more vulnerable to hacking and data theft. Since the data is located in a single centralized server.

4- Commissions are higher.

5- Exchange houses (CEX) have more difficulty to include new cryptocurrencies due to regulations.

Question no 4 :Which one is better for Business/trading and why?

To be fair, I don't think I have the last word on this question, as I think it really depends on the type of investor you are.

In my personal case, because of my style; I think that for me the centralized system works best.

In fact, the Exchange I use is Poloniex, which is Centralized. For me, the centralized system (for now) works better because it offers me a feature that I value: Regulation which not only offers less volatility but also offers me the facility to make claims in case I suffer any irregularity.

I am not saying that the centralized systems are better than the decentralized ones, but in my case, I am an inexperienced person, with some fears of the beginner, so, I feel a little safer trading in a CEX.

Question no 5: How do you know if a blockchain is decentralized or not?

Through a Blockchain Explorer.

A blockchain explorer extracts data from a blockchain. It collects the data so that it can then be easily interpreted by anyone. This allows users to see everything that is going on.

In my case, the process will be done through the TRONSCAN site. I will review the TRX crypto. All images have been taken by me from the TRONSCAN website. https://tronscan.org/#/

1- Access the TRONSCAN page and enter the address or name of the token you wish to check in the field indicated by the box.

2- Click on the contract link, in either of the two options indicated in the boxes.

3-Check the contract code for coding function destruct.

In my case, it seems that the crypto chosen is decentralized.

Conclusion

I believe that decentralization is a principle that changed the world, it is fundamental and defines blockchain technology. Decentralization distributes power to different people to control a system.

Within a decentralized system, the most important thing is the people and not the system itself.

On the other hand, I have heard lately that centralized systems should disappear to give way to decentralized systems, however, I believe that the key to success is in the coexistence of both systems, take advantage of their strengths, and try to overcome their disadvantages.