Finally, I have just started doing homework tasks here in the Steemit Crypto Academy which is in Season 2. Everyone might also read my homework to Prof. yohan2on, click it here. For this article, I will be sharing my homework task with the newest Professor of the academy, Prof. @yousafharoonkhan which discuss more on Decentralized and Centralized System which he asks the following:

<sub>Homework task:
1. Write the definition of Decentralization and Centralization in your own words. Explain these two systems in your own words.
2. Explain in your own words the difference between decentralization and centralization system Or Compare both in own words.
3. Write five Advantages and five Disadvantages of decentralized and centralized system.
4. Which one is better for Business/trading and why? (write in own words).
5. How do you know if a blockchain is decentralized or not? You can describe any method, but in your own words.</sub>

---

What are Decentralization and Centralization?

To start these homework tasks let us discuss first decentralization and centralization.

DECENTRALIZATION

Decentralization is the transfer of control from the centralized government and cannot be controlled by any authorities in decision-making. To be able for us to understand it well, let us discuss it further.

Let us discuss more what is decentralization in a very simple manner for us to understand it better and be compare to centralization. Decentralization is simply a system that cannot be controlled by any single authority or Organisation which means no one can control us whatever we want to do. We have the right to decision-making alongside without any control from other entities. Everyone has the right to decide in the system and cannot be dependent on the higher authorities or organizations. There must be multiple users over the system who have control of their accounts which means it is away from the control of someone.

CENTRALIZATION

Centralization is where the decision-making in all the planning and structure is governed by the top or higher position in the management. Let us further discuss this term and for us to understand it very well.

Another system we would need to know is this centralization system. Centralization is a system almost everyone knows as it is the commonly used system in almost all types of industry or organizations. In my own understanding, centralization mainly came from its word central which means all the decision-making and controlled from the higher or central authority. This is commonly used by an organization or the government. All its entities are dependent on whatever has decided within the higher position in the system. Whatever is decided, it should always be implemented and be followed by all the lower entities.

Advantages and Disadvantages of Decentralized and Centralized System

In all systems that have been implemented, there are always advantages and disadvantages, as well as decentralized and centralized systems. Now, let us discuss some of it then will make us decide what is best and for us to be informed about it.

Advantages and Disadvantages of Decentralized System

Let us first know the advantages and disadvantages of the Decentralized System.

Advantages of Decentralized System

• It reduces the burden of the top management authority in decision-making.
• The decision-making is transferred to all in the organization that makes it easy to decide.
• It will provide an organized and effective control of service over the system.
• There is less chance of hacking in the system as it is not controlled by one entity.
• As it is not controlled by the higher entity, an individual will grow more as it will decide on its own.

Disadvantages of Decentralized System
Here are some of the Decentralized System's disadvantages.

• High costs in the operations of the system.
• As we are not controlled by the higher authority, we will decide on our own and whatever may happen we are to blame.
• A volatility of the system is another issue to be addressed for,
• Self-centered which means we don't care about others as we focus on our own.
• Not organized as it does not follow any laws or rules.

Advantages and Disadvantages of Centralized System

Let us first know the advantages and disadvantages of the Centralized System.

Advantages of Centralized System

• It is organized as there is a rule implemented by higher authorities.
• Quick implementation of decisions for users to follow.
• Focuses on one vision as implemented by the organization.
• Reduces the system's costs.
• Increases the relations between each user and allows each best to do the work better.

Disadvantages of Centralized System
Here are some of my perspectives on the Decentralized System's disadvantages.

• Everyone must have to follow what is implemented without asking.
• Decision-making doesn't allow its users.
• We cannot decide on our own to improve the system.
• A higher possibility or risk of hacking as there is only one entity who controlled.
• The data of the users are not safe as it can be accessed by the higher authorities.

Which one is better for Business/trading and why?

In choosing a system in a business/trading we must know what is best of it. For me, it depends on the business/trading we are going to. Both decentralized systems and centralized are good but as to their advantages and disadvantages, we must have to consider all of them. A decentralized System is best when we are not to take any idea and decision from others. This is for people who are to do it on their own like in any business/trading decisions. For a centralized system, we will then be dependent on whatever is being implemented by a certain company for us to follow. As for me, I will rather choose the Decentralized System as it is what I am doing right now. I have done already any business/trading transactions without asking or be dependent on a higher authority. I will rather choose this system as It will also allow me to grow in my own decision-making and in whatever I am doing today. All I can say is that the decentralized system really doing well for what I am now and whatever may happen, it is all my fault and be blamed.

How to know if a blockchain is decentralized or not?

As I read on the topic being discussed, identifying if a blockchain is decentralized or not really catches my attention that is why I have to try it on my own as what is shown and discussed. The simple steps are as follows;

Step 1: Go to your chosen browser and type https://etherscan.io/

Step 2: Choose any Token Address and as my example, I will be using the Basic Attention Tokens (BAT) as it is in Ethereum based tokens. Get the BAT Contract Address then paste it in the field as shown below.

**Step 3: After you put the contract address and click search, you will know to see the details of the BAT tokens. Now find and go to Contract.

Step 4: After you click Contract, you will then now see the token's coding which allows us to know if it is decentralized or not according to the lesson if we find this code function destruct only administration, self destruct in the coding field in the contract details.

Conclusion

We have discussed and known better about the decentralized and centralized system which will be a lesson especially when we are dealing with Blockchain Technology and Cryptocurrency. It is important to know for us to be aware and better understand what we doing in this industry. Reading any blogs and news about it is a good way for us to know it and as what I have written, I do believe that I have discussed some important points about it though it is not totally discussed very well. I encourage everyone to know decentralized and centralized systems too and apply them to whatever you have started either it is in a business or cryptocurrency trading activities.

This would be my homework task article to Prof. @yousafharoonkhan this 1sth Week of the Steemit Crypto Academy in its Season 2 and hopefully, everything is fine and be accepted. I've appreciate all the efforts and information I've got from the lesson and I'm looking forward to the next lesson next week.

Thank you also to all the Steem Team who initiated this new project, to @steemitblog, @steemcurator01, @steemcurator02, and to all curators who supported this project.

That would be all, thank you and God Bless!!!

---

Your Steemit Crypto Academy Student;