Steemit Crypto Academy Season 2, Week 1 || Decentralized and Centralized system, Advantages & Disadvantages and which one is best for business?

Assalamualaikum,
Hope everybody is well. Today I will complete the homework of Professor @yousafharoonkhan's Steemit Crypto Academy Season 2, Week 1. I have read the whole lecture a few times before completing it. After reading the lecture of #yousafharoonkhan on decentralized and centralized systems, my idea became clearer. Now I will try to answer all the questions of homework in my own way from my idea. I hope you like it.

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Question No 1 :

Write the definition of Decentralization and Centralization in your own words. Explain these two systems in your own words.

Decentralization:

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One thing is enough to explain decentralization in a simple way where no particular person or group has authority. That means the importance of each person is equal here. Here everyone can express their opinion. The source code of decentralization is open to everyone. There is no specific owner here. Here all the individuals or groups are connected to each other through blockchain. An illustration can illustrate the point more clearly:

Source

In the picture above we can see that each person has created a network by connecting with each other. It seems like everyone here is at Central. In fact, they are all connected to each other. This is called a blockchain decentralized system.

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Centralization:

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Centralization is the opposite of decentralization. We can say the field of centralization has a central regulator here. It is usually dominated by powerful individuals or groups of people. The concept can be cleared with an image:

Source

The figure above shows the red part in the center and it is controlling the rest. As in decentralization, everyone had the opportunity to communicate with everyone, but not here.

Question No 2 :

Explain in your own words the difference between decentralization and centralization system Or Compare both in own words.

Decentralization system	Centralization system
Not managed by an individual or group. So it is quite reliable.	Managed by an individual or group. So it’s not too reliable.
Decentralized systems are not easier to use and have lower liquidity.	Centralized systems are much easier to use and have higher liquidity.
Decentralized systems can never be hacked.	Centralized systems are relatively easy to hack.
Decentralized systems use multiple servers so it never goes down.	Centralized systems use a server so it can go down.

Question No 3 :

Write five Advantages and five Disadvantages of a decentralized and centralized system.

Advantages of decentralized systems:

1. In decentralized systems the fund is completely under its control.
2. Decentralized systems are more reliable.
3. Transaction fees for decentralized systems are low.
4. There is no fund transfer limit in decentralized systems.
5. Decentralized systems are almost impossible to hack.

Disadvantages of decentralized systems:

1. It is unknown at this time what he will do after leaving the post. So money or illegal work money transactions are more.
2. Once the wallet password is forgotten in decentralized systems, it can no longer be recovered.
3. Decentralized systems are a new system so not everyone can use them.
4. The cost of making decentralized systems is high.
5. Coin prices fluctuate a lot in decentralized systems.

Advantages of centralized systems:

1. In centralized systems, money is not completely under your control.
2. If you forget the password of centralized systems can be recovered.
3. Centralized systems are much easier to use. Anyone can use it.
4. Scanning money on centralized systems can find out what he did.
5. In centralized systems, if you forget the money and send it to someone else, it can be returned.

Disadvantages of centralized systems:

1. Centralized systems are more likely to be hacked.
2. The cost of sending money to centralized systems is high.
3. Sending money to centralized systems is a waste of time.
4. Money can be lost in centralized systems even if you are not mistaken.
5. Centralized systems control an individual or a group.

Question No 4 :

Which one is better for Business/trading and why? (write in own words)

This question cannot be answered in one word. Because centralized and decentralized systems have advantages and disadvantages. So which system will be better depends on the type of our business. Decentralized systems may be more useful in any business. In any business, using a centralized system may be more beneficial.

If anyone wants to hide the extent of their business transactions, they will definitely not use a centralized system. Because by doing so, the authorities will be able to know how much money he has and will also find out where and how much he has transacted.

Again there are many who are not yet aware of decentralized systems. If they want to do business, they have to rely on a centralized system. However, in a centralized system, the transaction fee is relatively high and takes more time.

Question No 5 :

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

Though there are a lot of ways to check which coin is centralized or decentralized I would prefer the way I taught by my professor. So let's see how I check DAO coin is centralized or decentralized:

Step 1:

First I go to etherscan website

Step 2:

After that, I paste the company token contact address.

Step 3:

For example I took the DAO Maker (DAO) coin. So I pasted this address "0x0f51bb10119727a7e5eA3538074fb341F56B09Ad"

Step 4:

I checked the source code and found the DAO Maker (DAO) coin decentralized.

Conclusion

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I think I was able to answer all the questions correctly. I hope those who are new will learn a lot from my post. I have tried to explain as fluently as possible. If I have made a mistake somewhere, it is requested to correct the mistake. Or don't forget to leave your opinion in the comments. That's all for today.

Thanks,
@masumrbd