Crypto Academy Week 9 - Homework Post for [@Yousafharoonkhan]
Write the definition of decentralization and centralization in your own words. Explain these two systems in your own words.
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** Decentralization ** It is the distribution of faculties or powers to various entities or people, thus making possible the correct functioning of an entire system, without depending on someone to regulate each action, thus giving the possibility that if one of the members of this group fails, the organization or entity system can follow its correct operation all its operations
** centralization ** It would be logically the opposite of decentralization but to be more specific, centralization is the accumulation of power or actions or money in a single point, this being an entity that regulates everything, If this centralized organization does not work the whole system stops and cannot work.
Explain in your own words the difference between decentralization and centralization or compare both in your own words.
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The difference is very easy to notice, a centralized system regulates everything, therefore it has the power and authority to indicate the guidelines to follow until members or people are not allowed, another thing is that it limits everything depending on their interests, in a decentralized system There is total freedom where everyone has the same power and action, if one part of the system fails there are many pairs with the same information that can easily cover the needs that are required, so a decentralized system is more efficient and secure since everything is auditable, something that does not happen in a centralized system since only the regulatory entity is in charge of managing all the transactions and records that it performs.
Write down five advantages and five disadvantages of the decentralized and centralized system.
Advantage
| Centralized | Decentralized |
|---|---|
| Asset backup | 100% auditable |
| High liquidity | Unlimited Transactions |
| Mass Use | Speed |
| Alliances with governments | Without regulations |
| Trust of people | Better Security |
The best advantages of the centralized system is that it backs its assets in fiduciary money, this gives it high liquidity and makes its use widespread and most people use it since it generates trust thanks
alliances with governments and banking entities.The advantages of the Decentralized system is that it is 100% auditable, the transactions that can be carried out in this system have no size or time limit, so at any time you can carry out transactions without having to wait for cash to be made or for someone to verify This gives it greater speed since it does not have cumbersome regulations and when running on blockchains this gives it greater security. And one of its biggest drawbacks is that if you make a transaction by mistake, there is no way to back it out and return the funds to the original account.
** Disadvantages **
| Centralized | Decentralized |
|---|---|
| Transaction limit | Little confidence |
| Regulates every action | Few people use it |
| Cumbersome registration | Total freedom |
| Much power in few people | It does not have the backing of assets |
| It is not auditable | failed transactions cannot be returned |
The disadvantage of the centralized system is that its transactions have limits, since each action is regulated without mentioning that in order to carry out these transactions a cumbersome data record is necessary, since its power is centered on a group of people who have the decision-making power of the same and no ordinary person can make an audit.
Disadvantages of the decentralized system is that few people are aware that this type of exchange exists and the few who have a basic knowledge distrust it, although they have total freedom to carry out transactions that one wishes that is a point against since thanks to this many people dedicated to dark businesses use this type of system to do their misdeeds, and many of the times they do not have real backing of their assets
Which is better for business / commerce and why? (write in your own words)
How to know if a chain of blocks is decentralized or not? You can describe any method, but in your own words.
Conclusion
CC:
First respected student Thank you very much for taking participate in Steemit Crypto Academy Season 2, Week 1 course class..
-here i will recommend that question five was also practical and you have not explained it properly.
Ratting : 6