Question 1:

This is my first crypto academy assignment and I am very happy to be part of this class.

write the definition of decentralization and centralization in your own words. Explain these systems in your own words.

Decentralization

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Decentralization refers to the transfer of authority or control of activities of an organization to several local offices or authorities rather than an individual. However, in relation to block chain, any individual has the power to make his or her bold decisions which is very important in decentralization,

Centralization

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Unlike decentralization, decision making is mostly performed by the top management, and the followers need to obey the decisions from the top offices.

Centralization of authorities is important in small-scale organizations which lack resources and finance.

Question 2:

Explain in your own words the difference in decentralization and centralization systems or compare both in your own words.

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To compare and contrast between both systems, everybody will understand how they both are applied in crypto currency and block chain management. In Centralization block chain is controlled by an individual whereas

In Decentralization, crypto currencies and block chain are managed by many people.

Let’s try to compare block chain in terms of their systems of controls;

Centralization in cyptocurrency is mostly used by block chains that have inadequate control over their systems example like the ICOS [initial coin offering] However, In Decentralization blockchains have highly good systems and controls it their own way.

In another form, lets understand the mode of communication or the way decentralization and centralization enable communication in block chain;

In centralization there is a formal way of communication between the individuals and the management. But in decentralization communication in block chain can be done anyhow or anyway depending on how the management wants it.

Lets also compare in terms of the size of preference; Relative small size block chain organization will prefer centralization as it can easily be managed but Decentralization is mostly preferred and used in by large scale organizations.

Question 3

Write five advantages and five disadvantage of a centralized and decentralized systems.

I will like to highlight the advantages and the disadvantages of centralized and decentralized systems;

Advantages of centralized systems

1. In centralized system, making decision is very easy and simple. As it it is just sole person decision.
2. Decision taking by the sole command has to be obeyed by followers.
3. Furthermore, in this system every user or follower work towards the aim.
4. Also, centralization improves supervision as user provide report at the end of their service.

To end, decision making is quick and fast. So the system can be managed with ease.

Disadvantages of centralization

As I have mentioned the good side of centralization I will like to also talk about the weak side of it, as everything has good and bad side.

There is poor security in centralized system. So fraudsters or hackers can easily tap into the systems and cause harm to the block chain.
Moreover, the fact that everybody is control by sole person there is delay in work process in a centralized system. Lastly, employees do not have the freedom to express their views as they are always made to take instruction from top executives.

Advantages of decentralization

Now I will like to touch on the advantages of the decentralized system. This system in the cryptocurrency and block chain has a lot to talk about but I will like to touch on the few.

1. Savings and wallets of users are safe. This is for the reason of their strong security systems and so transaction made in decentralized system are safe.
2. Also, in decentralizion, the work burden is eased on every individual since everyone is having the opportunity to manage his\her sector of work.
3. Scammers or hackers do not get decentralized system to hack or steal from this system. So fouds from individuals are safe.
4. And more, power in a decentralized system start from the lower rank to the higher rank.
5. Lastly, in a decentralized system emergency cases are easily handled. This is due to the larger size of the population.

Disadvantages of decentralization

We cannot always talk of the good side of the decentralized system whiles over looking at the disadvantages of the decentralized system.

Decentralized is highly cost system since many people will made living out of it.

Also, in decentralized system, more resources are wasted. This is because more heat, light and power will not be efficient.

Lastly in this system, emergency meeting for quick and simple is not possible since large population will be involved in the decision process.

Question 4
Which one will be better for business/trading and why?

For me, I think I will choose the centralized system and this is why;

This also has a lot of bad side but I think that is the best system to choose in the business and the trading world.

Everyone in this world is into a business to make profit. In centralized system the cost of materials reduced since relatively small number of people work in this system. More resources are also managed and this saves a lot of profit and income for the owner. Reports is always demanded for each work piece done in this system. So always prevent the losing of materials. Moreover, since it is solely managed there is proper supervision from the management and so prevent corruption among workers and individual.

Question 5;

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

Step 1:
Search for etherscan in google search

Step 2:
Paste company token contact address in the opened site.

0x53c4871322Bb47e7A24136fce291a6dcC832a294 - wrapped litecoin token adress

I choose to search for litecoin blockchain that is decentralized or not.

Step 3:

Click on contract

Step 4:

Check contract source code ( solidity ) in coding area.

You can every detail about the blockchain in the coding area.
If u see coding functions destruct only administration, self destruct , it means the system is not fully centralized.

The blockchain is decentralized since I didn't find any of the coding functions.

Thanks to our able professor @yousafharoonkhan for his tireless work