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Question 1. Answer:

In my own words, decentralization means a system or network in which every one has authority over it. In other words, there is no Central authority or higher power that makes the rules or controls that system. Decentralization is becoming very popular in finance which means that there is no Central bank or individual owned banks that have top board members that regulate monies that pass through those financial institutions.

On the other hand centralization means that in a system or network, there is a Central point from which policies and decisions are made that regulate that particular system. Individuals are at the mercy of the board of directors of that system and can only make transactions only when clearance is gotten from the Central authority.

Question 2: Answer-

A.There is no Central authority in decentralization but a Central authority in centralization.
B. Every user of the decentralized system is a decision maker while in a centralized system, the users await instructions from the top.
C. In decentralization, data is stored in different nodes in a blockchain, while in centralization, data is stored in a Central node.
D. A decentralized system is difficult to hack since each user has total control of his/her keys and passwords, while in centralization, it is easy to hack since it is controlled from one point and the users do not have total control.
E. A decentralized system does not require KYC (Know your customer), while a centralized system requires KYC.

Question 3: Answer-

Advantages of Decentralization

A. It is very secure and therefore can not be easily hacked.
B. It is easy to use since it does not require one awaiting instructions from a higher authority or queueing at the bank.
C. The users have complete control of their funds.
D. Data cannot be edited since storage is in different nodes.
E. It encourages motivation since users make their own independent decisions as regarding their funds.

Disadvantages of Decentralization

A. There is little to no support system. If I have a problem, there is no higher authority to help me.
B. Funds can be easily lost since any little mistake in inputting addresses or password spells a total and often irrecoverable loss.
C. The cost of running a decentralized system is on the high side since it requires highly skilled staff and more equipment.
D. Since cost is high, making profit would involve more financial burden on the users of the system.
E. The volatility of the system is a cause for concern. Imagine me keeping $1000 worth of steem and tomorrow I realise the value has fallen.

Advantages of Centralization

A. In case of problems encountered by users, there is a support system to help.
B. It is easier to trace funds lost due to errors. For instance, if I transfer money to a wrong account, it is easy to trace and recover.
C. The financial cost of running this system is lower since a Central server is used.
D. It promotes improved quality of work since there is a structure that should be adhered to.
E. There is a clear path of command since there is hierarchy in the system and everyone knows who to report to.

Disadvantages of Centralization

A. The problem of bureaucracy arises since one cannot make an on the spot decision but await instructions from the top.
B. Since decisions cannot be taken on the spot, it can cause a delay in work.
C. Since there is a Central server, it is highly prone to being hacked.
D. It is easy to edit data on this system.
E. Users of this system are not treated equally. It is a case of human beings are equal but some are more equal than others.

Question 4: Answer-

Personally, I prefer the centralized system only because of its support system. I have lost some money through this decentralized system and I was not happy that I could not do anything about it.
In addition, I prefer a system with structure, a system that decisions are taken by a level of authority and one knows his/her specific job to do. Call me old-fashioned.
Furthermore, most people are not internet savvy in my country, so to reach out to them, a Decentralized system would not help my business. My customers would prefer a face to face kind of transaction, one in which they are known.
To also reduce cost, a centralized system would be more preferred.

Question 5: Answer-

Step 1. I searched for XRP token address on ethplorer.

Step2. I pasted the token address on the etherscan page and clicked the search icon.

Step3. I then clicked contract and it displayed a drop down of coding

Step 4. I searched in the coding area below the contract source code (solidity).

I did not find any words like self destruct or function destruct. This means XRP is decentralized.

Special thanks to @yousafharoonkhan. I have put my brain to work to fully understand these systems.

I am a member of steemalive and this is my introductory post

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