Steemit Crypto Academy Season 2, Week 1 || Decentralized and Centralized system , Advantages & Disadvantages and which one is best for business?// Homework done by @davchi
Question NO 1 :
This is a mechanic or system where by functions, activities, engagements, works etc are independently and exogenously performed by different identified or unidentified systems ( which could be individuals or electronics) without necessarily waiting for automation of orders from any specific unit or body.
Nevertheless, it is noteworthy to recon that this very systematic protocol of engagement, stimulates and spurs a higher speed of participation, since it demands little or no "wait to take order" before carrying out any funtion. And for instance, organizations that operates on this kind very modus operandi really disburses optimum utility to individuals and customers who engages in their services.
Centralization could be seen as a process of work shares or work load, where by every separate institution that is subscribed to a particular organization or system, adheres and also takes orders for their functionality from a precised central unit or body or probably the institution or system they are subscribed to.
So the separate systems takes orders from the central body based on a compulsory demand function (that is, the separate systems can not act without orders) and to be precise, this kind of disbursement of funtions creates a clung in the wheels of many organizations persay.
Question NO 2 :
Let's take a look at the volume and magnitude of their discreepancies using a table, although not limited to this alone:
| DECENTRALIZATION | CENTRALIZATION |
|---|---|
| 1.In decentralized system, activities are carried out without unnecessary permissions. | centralization is based on what I termed "work with rules and order" |
| 2.There is a governing body which disburses activities to every other system. | There is a governing body who overseers every engagement in the system. |
| 3.since works are done without unnecessary permissions, hence the speed of work and engagement here is highly encouraging | the speed of work with regards to this concept is most times slow, since you must take permission on certain activities in the system. |
| 4.since there is less or no regulation, any body can carry out any function of his choice in the system. | Here there may be restrictions on probably number of persons engaging per day and perhaps age restriction due to it's formalities and protocols. |
| 5.The tendency to hack this kind of system is very minute, since every individuals data is stored separately in his choice system. | Here there is the possibility of hackers to penetrate and cart away with a company's valuables, since probably their data is stored in a central system which can be accessed by a professional hacker. |
Question NO 3 :
- Easy to manage and maintain, since the bases of their operation is uniquely separated.
2.uneasy to be hacked: really since there is no central point where certain data are kept, it makes the system impossible to be hacked, unless on the bases of some individuals carefreeness.
3.It is users friendly: since there are less rules and orders in this system, it makes it to be customers and users friendly due to the less protocols involved.
4.Easily adapts to some technical changes and maintenance in order words it is very flexible to users.
5.The speed of it's operation is highly encouraging. As there is no central unit for it's operation, we can deduce that the breakdown of one system has no negative effect on the other.
1.Goveremnt intervention: since the tendency to regulate and estimate the profit individuals are separately making from the decentralized system, it is possible that the government may intrude in to the system by inacting certain barricades that can negatively influence the users of such decentralized system.
2.It can cause negative externality: this entells using something you didn't pay for, since the profit of individuals who engages in this kind of system are probably not so feasibly estimated, in the sense that they may claim that they are not income earners, it can result to they not contributing to the development of their locality, probably by not paying their required income taxes.
3.It does not encourage transparency in earnings: Since in this system there is no track of your portfolio earnings, it therefore places a hitch for government institutions to track ones earnings which can automate him to contribute to the development of his locality but on the contrary it is only through indirect taxes that the government could benefit from such individual or persons and perhaps decentralized system persay.
4.It is exhorbitant to manage: we can agree that no innovation and idea came form no where, in other words, I and innovations are brought by someone and likewise also an investment must be financed by someone. Hence the inventors of any decentralized system invest a high and reasonable amount of capital to maintain the system, whether at their detriment or to their profit while every other person in the system enjoys the the systems offer with little or no effective contribution.
5.People can turn to Hoarders of knowledge due to unprofessionalism. We can agree ti the fact that It is actually what someone has that he can comfortably dish-out. In this regard, most people that operates in this kind of system, hoards knowledge about the system due to lack of proper acquaintance with the workings of the of system.
FIVE ADVANTAGES OF CENTRALIZED SYSTEM
1.It is easy to manage: This system is very easy to manage since it operates on grounds of a well planned system where stake holders can easily take decisions that are for the general good of the organization
2.It Is flexible: the system runs on ground of flexibility since it maintains a central unit where various managers and stakeholders can easily twist and bend the rules of the organization in other to fit to the demand of time and occurrences
3.Quick decision making: going by the rules of this system, the owners of such system takes their decisions and enforces them without any external interference, and since there is no need of itrequisite external protocol, it makes the owners ofthe system to implement their decisions quickly.
4.it encourages accountability: since checks and balances are understaken by the owners of the said centralized system, which makes it possible for the financial worth of individuals to be tracked by the central body, hence a ratio or portion of the earnings of those participating individuals are remitted probably to the government as tax, which makes the system financially accountable and transparent.
5.finally this system has a well constructed and defined rules of engagement (goals and objectives) which makes things easier for their day to day operation which is as a result of their definiteness and precision.
1.IT IS LIMITED IN SCOPE: Really there are many organizational system whose rules may not suite or favour everyone probably based on their gender or geography, this them makes the system to be limited in scope.
2.LEAKAGE IN INFORTION:
There is the tendency for leakage of information;
Since human beings operates on different scales of rationales, there is the tendency for vital information with regards to the system being leaked to the detriment of the oustanding organization. Nevertheless we can still recall that at a time in August 2019, a group of hackers was able to penetrate into some peoples application programming interfaces where they hacked some irrationally reasonable quantity of Binance coin which I believe should be as a result of some leackages in information although not in reference of the Binance being a decentralized system but with regards to leackages.
3.DIFFICULTY IN MANAGEMENT:
on the contrary, it is difficult to manage the centralized system since it is built on the bases that orders are to be taken from the central unit before operations are performed by seperate bodies.so the cause free operation by the separate bodies makes it difficult.
4.HIGH COST OF MAINTENANCE:
The cost of maintenance of this very system is very high, as matter of fact we know that in the decentralized system for instance every individual works as a separate body, which is the beauty of division of labour and therefore reduces Theo work load at the central system. but this is not so on the centralized system, because for their operation any thingthat is obtainable at the center is applicable to other sub part or region of the entire system which makes it difficult to maintain.
5.IT CAN CAUSE A SYSTEM DISFUNCTION:. finally it is quite obvious that the breakdown of the central unit or system can cause a disfunction in the other region of its subordinate since every other part obtains permission at the central unit before functioning.
NO 4
Really from my observations from these two system, their meanings, advantages and disadvantages, i would stand and also maintain the protocol that the centralized in all of its features can not be equilibrated with the advantages i have seen in the decentralized system, despite its little hitches.
so i would prefer and even recommend the DECENTRALIZED SYSTEM as the system that is best for trading because of the pretty features i have seen in it. In nutshell because of the smooth running
of the system that is because of its uncentralized nature, that actually gave rise authenticates high level of security in the system, which ia the paramount thing in business, since no one would like to continue in a business where his funds and properties are unsecured.
No 5
For me i cheched using the STEEM
so here are the protocols involved:
first i went to the Google and on their search engine, i typed "TOKEN CONTRACT FOR STEEM"and it came out
next it took me to this page where i entered and copied the STEEM contract address.
After copying, i then pasted it on the search handle of this page where it opens and i scrolled down to view the stipulated codes at the page, of which it first displayed the becompile byte code.
But since my aim is to check on the solidity of the system maintaining a decentralized process, i had to click on the "switch to opcodes view" to check and finally it brings up the codes i am looking for, we can see it below
Now in conclusion, i checked to confirm its solidity as a decentralized systyem, by searching for words like "only administration or self distruct" but since i couldn't find any thing asuch in the codes,, i had to conclude that the steemit ecosystem is a decentralized sysyem.
Really the two systems are very good, although not without limitions, but based on the kind of business one wants to engage, will determine the kind of system to be deployed, for instance it is more advisable to deploy the centralized mechanism in financial institutions like Banks and some insurance companies, while in businesses like the Cryptocurrency exchanges it is more expedient to go with a decentralized system although any institution can operate using their choiced mechanism that is either centralized or decentralized system.
I wish to appreciate Pro. @yousafharoonkhan for putting me through this incredible research, thanks for going through my post.
cc: @yousafharoonkhan
Hi @davchi
Thank you for joining The Steemit Crypto Academy Courses and participated in the Week 9 Homework Task.
Your Week 9 Homework Task verification has been done by @Stream4u, hope you have enjoyed and learned something new.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
Am grateful Prof. sir for your incredible remark on my post