Hello to everyone,

I am very happy that the SteemitCryptoAcadamy is full back to give us the opportunity to learn more about blockchain and cryptocurrencies. After carefully going through this week’s teachings and doing some research on my own, I am able to gather enough info to get the homework task done. Let’s get into that.

What is decentralization?

source

Decentralization is a form of administrative establishment that operates by giving out decision making abilities to several groups across the world. This is the major attribute of decentralization. At this moment, we have a frequent database with the whole record of financial transactions, customers account and routing numbers and other relevant info that is not saved on not even on one server but is detected on billions of computer systems that are always synchronizing with each other every second.
The network will work well and defended barely if only the computers systems storing Blockchain are presently connected to the Internet.

What is Centralization?

source

---

Decentralization is the dispense of management aside from a central and dependable organization over to the entire population inside a network. Blockchain is totally against any type of centralized management but rather, gives power to all users to have a hand in running and providing their thoughts to a transparent system.

Difference between decentralization and centralization systems

1. With decentralized system the flow of information is open and also free. On the other hand, information is vertical with centralized system.

2. Decision making in decentralized system is significantly faster while decision making in centralized system is slow.

3. In decentralized system, conflicts or misunderstanding in decision making is likely to occur while in centralized systems, conflict in decision making is less likely to occur.

4. Decentralized system is exposed to instability due to many opposing decisions. With centralized system, stability is also present as decisions are being made by central authority.

Advantages of Decentralized systems

1. Decentralized systems avoids the dangers involved in too much concentration of power

2. Every one of decentralized system can take part in decision making.

3. Decentralization systems gives low level users the ability to gain leadership skills, which can be a benefit to the growth of the system.

4. Employees are given the power to make decisions that will benefit the system.

5. Employees on decentralized system are motivated because their opinions are respected and taken in consideration and also put to work.

Disadvantages of Decentralized system

1. Employees finds it difficult to cooperate with the overall activity going on, on the system.

2. It is expensive to run because users have to be paid when they give valid contributions to decision making.

3. Decentralization becomes pointless when there are no intelligent and efficient employees.

4. It’s not possible for users to abide by the policies governing the system because every user has equal power to make decisions.

5. There is a higher risk of everyone getting hacked when there is a problem in the code behind it since everything is exposed on decentralized system.

Advantages of centralized system

1. Decision making is easy with centralized system.

2. It promotes equity across the system as decision taken by developers are applied to everyone else on the system.

3. Centralized systems avoid misunderstanding among users.

4. Centralized systems are stable because decisions are made by developers sharing a common idea.

5. Centralized systems promotes unity and togetherness among users.

Disadvantages of Centralized system

1. Decision making is relatively slow in centralized systems.

2. The passage of information is also very slow in centralized system.

3. There is always much burden on developers because they are the only body that have power to make any changes and also make decisions if need be.

4. Nobody is given the chance is use their own judgments on the system, hence, destroys the individual’s initiative.

5. In decentralized systems, there is a high possibility that developers might misuse the power given to them.
   Which is better for Business?

Based on the couple of researches that I made, decentralized systems are much better and safer to invest in than centralized since there is higher security in decentralized systems. This prevent prevent hackers from invading the system with matters related to decentralized systems. For the fact that in centralized system’s security is weak leaving it vulnerable for hackers’ invasion. Based on this, I see it to be a much safer side to invested into decentralized instead of centralized system.
In order to determine whether a blockchain is decentralized or centralized, I will do that practically by using Binance blockchain and etherscan method. Screenshots will be shown after each step.

Step 1
Search for Etherscan on Google

Step 2
copy and paste the token contact address which can be found in coin marketcap

Step 3
pasting the Binance USD token contact(0x4Fabb145d64652a948d72533023f6E7A623C7C53) in the address bar provided.

Step 4
click on contract button

Step 5
Checking the token source code also known solidarity

Looking at the source code of Binance USD, it is obvious that Binance is fully decentralized.

Thanks to professor @yousafharoonkhan !!