Thank you @yousafharoonkhan for the simple and detailed explanation of Decentralisation and Centralisation system. This class made understanding very easy.

Below is my homework. I hope I am able to show you I really understood what you taught.

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Decentralisation and Centralisation

source

Decentralisation

Decentralisation is the system which is not dependent soley on one individual or a group of people which we can refer to as heads. In this system, every user has impact on the system, and so every user is important. Not just one individual or group of people can control power and decision-making.

Centralisation

Centralisation on the other hand is the opposite of Decentralisation. In this system the control of the affairs of the organisation is managed by one individual or the heads of the organisation. Not everyone can make decisions in this system.

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Comparison of Centralisation and Decentralisation

From the definitions above it is clear that there are huge differnces between the two sytems because one is the complete opposite of the other. Below are the comparision between the two systems.

• Control and Decicion-making

Only one individual or group has control of power in a centralised system while in the decentralised system no one person or group of people have control of power. Because a centralised system has just one individual or a group of people controlling power it is easy and fast to make decisions. But with the decentralised system it is very difficult to make a decision.

• Administeration

The decentralised system is a more reliable administeration as compared to the centralised system. This is because with the decentralised system, the system is run by all the users connected to the decentralised blockchain network unllike the centralised system which is run by one individual or a group. And so when a centralised system decides to completely shut down, the users will be harmed, while with the decentralised system no harm can be done because the system cannot be shut down unless all the users decide to stop running the network.

• Usage

Decentralised is difficult to use while centralised is easy to use. This is because centralised has high liquidity while decentralised has low liquidity.

• Security

Decentralised system is more secure as compared to the centralised system. The centralised system has been hacked several times. This is because
unlike the decentralised system all the data is stored in one place. This also makes it possible for people with access to the main server to edit data whenever they want.

• Reliability

Decentralised system has hundreds of servers while centralised has only one server. If the server goes down in the centralised system the whole system would be down. But with the decentralised system it will still be operational because it has more than one server. This makes the Decentralised system more reliable.

• Scaleability

Decentralised system has high scaleability while centralised system has low scaleability.

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Advantages and Disadvantages

Decentralisation

Advantages

1. Very secure and safe. Has 0% chance of harking.
2. High scaleability allows easy management of large scale businesses. It makes customers and workers empowered at grassroot level.
3. Encourages hardwork and makes everyone work from self-confidence. Also, everyone has equal chances to develop.
4. Light burden on top management.
5. Very reliable. If a server is down other servers can easily replace it.

Disadvantages

Decentralisation though has many advantages but it has disadvantages too.

1. Because everyone has control over his affairs it leads to increase in crime.
2. It also lacks stability due to price flactuations.
3. It is very expensive.
4. It exhibits volatile behaviour.
5. Difficult to make decisions.

Centralisation

Advantages

1. It is less costly.
2. Decision making is easy and fast.
3. Vision of the top authority is what is worked on. This makes it easy to attain a particular goal or objective.
4. Implementation of new rules and decisions are fast. This is because there are less powerful people to rival against decisions made.
5. Well defined roles which improves the performance of users.

Disadvantages

1. Weak security which makes it easy to hack.
2. Views of low level users are not considered in decision making.
3. Puts a lot of burden on one individual or group of people
4. Data can be edited by people with power
5. Users are not treated equally

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Which system is better for business?trading?

Both systems have their pros and cons, and so the type of business or trading should be considered before selecting a system. The type of system should be based on preferences also. Take time and analyse how you want your business to be run. Whether by just you, with you being the head of authority, or making it decentralised with not just one person having authority. Look at the advantages and disadvantages both options provide, and select the one that suits you.
And so the system better for business/trading depends on the business and the preference of the creator.

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How to know wheter a system is decentralised or not.

You can use the guide below to tell whether a system is either decentralised or centralised.

Step 1

First open your brrowser. In the search box enter "etherscan.io".

Enter the search option and go to the web page.

Step 2

You should have the company token contact address. If you do not have it copy it.

Step 3

Paste the company token contact address in the search box and click search.

Step 4

Select contract

Step 5

Now check the contract source code (Solidity)

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Thanks once again @yousafharoonkhan .This is my homework.