Hello all steemians .I hope you all will be good in health. This is my homework task of week 1 season 2 by dear prof. @yousafharoonkhan which is about centrelized and decentrelized system .So lets start ..

First of all we discuss about that what is decentralization and centralization .

[1]

DECENTRALIZATION

Decentralized system is that system in which all the individuals are empowered to make the changes in the system and all the activities does not depend upon the single individual .In it control and power are distributed among different authorities ,teams or the units. Such a system is called as decentralized system.

Decentralized system does not have a single owner or system that has only power to make the decisions or changes but all the communities that are connected with the system has authority and everyone is independent and all has basic role in managing the system.

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Some EXAMPLES of decentralized blockchains are

• Steemit
• Binance Dex
• Oasis

CENTRALIZATION

Centralized system is that system in which a whole blockchain depends on the single central authority . All the authorities connected with the blockchain are not empowered to make changes in the system individually . Means in centralized system all authorities connected to blockchain has a basic center . Which is enable to make decision and ,policies .

A single system controls all the communities on which other authorities depends upon to make changes in the system and its decision has power only.

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Some Examples of centralized system are following

• Binance
• Coinbase
• Bitfinex

[2]

COMPARISON OF CENTRALIZATION AND DECENTRALIZATION

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=> As we trade crypto currency in the exchange these are mostly centralized and the fund of user was depending upon the central main authority who takes the control of whole system And this system is exchange centralized system .While in decentralized system the user controls its funds .

=> You can run your business in decentralized blockchain even without your identification even while in centralized system you enter with your identification and permission of high authority.

=> In the case of administration the decentralized system or blockchain is most reliable because every person from any corner of the world can control the decentralized system . While in the case of centralized system the if the higher authority which is controlling the whole system if shutdown the system then its users can harm by their this action . But in decentralized user do not get harm .

=> Centralized system is usually easy to use then that of the decentralized system.

=> In the case of finance the decentralized will be more suitable than centralized system because centralized system or block chain can be hack instead of decentralized.

=> The data of decentralized system is not kept in one place but it is stored in different authorities that are connected to the blockchain . While in centralized system the data is stored in central unit who controls the whole system and it can bring changes in it or edit it whenever he want.

=> Decentralized has high reliability and scalability then that of the centralized blockchain .and decentralized is preferred from centralized in some respects.

[3]

ADVANTAGES AND DISADVANTAGES OF CENTRALIZED AND DECENTRALIZED SYSTEM

=> ADVANTAGES OF DECENTRALIZED SYSTEM:

• Funds in decentralized system are safe and has minimum chances of hacking .
• DATA in decentralized system is safe and can not edited by any of individual.
• Opportunities for all individuals are same and they can work independently which increases their self confidence and help him to develop.
• Governance increases due to greater participation which helps in the coordination of system because all people use their own best ideas.
• Burdenon the top management is decreases due to presence of high population in working .so the relation between customer and user also increases.

=> DISADVANTAGES OF DECENTRALIZED SYSTEM:

• CRIME in the transfer of funds increases. Which causes many problems in funds .
• Prices of cryptocurrencies are not stable in the case of decentralized system and causes many fluctuations in the prices day by day.
• global big tasks are difficult to achieve – No chain of command to command others to perform certain tasks.
• It Is Costly than that of centralized system .
• It also causes Volatility due to fluctuations in the prices.
• Misuse of any authority is also included in its disadvantages.

=> ADVANTAGES OF CENTRALIZED SYSTEM:

• Reduced cost is big advantage of the centralized system . The cost remain same until the network needed it to expand the work .
• Quick decision are taken by the central unit which can implement it fastly to bring changes in the whole system.
• Command is another advantage of the centralized system and due to command of higher authority the reporting become more easier.
• Vision of all authorities is same which is chosen by higher authority that is controlling all the system .
• As every user have to answer the higher authority so everyone tries to improve his performance .

These are some advantages of centralized system .

=> DISADVANTAGES OF CENTRALIZED SYSTEM:

• Security system of the centralized system is weaken so the hackers can access the system easily.
• Unfair behavior can be shown when some users are preferred over the other .
• As all the whole network is dependent on one point so the failure of single central point can case the failure of whole system which is the big disadvantage of the centralized system.
• Lower users are not included in the decision making . Decision only depend upon the high authority which causes the atmosphere of frustration.
• A single server is used in most cases it leads to scalability limitations.

[4]

WHICH ONE IS BETTER FOR BUSINESS

=>Before starting the business you have to check the merits and demerits of both systems and also have to see the nature of your business or time span that you want to spend long time or short time in the business.

=> If the decision of high authority are not useful for your business and you are not satisfied with the rules and regulations of higher authority and not suited to your business you must select decentralized system because in decentralized system you can work in your own way according to the conditions that are useful for your business.

=>if you are not able to spend a lot of time on your business and does not know to take the decision useful for your business and want to work according to high authority orders and also want to invest low price in your business you have to select centralized system. because it is less in cost then that of decentralized system .

=> Overall the selection of centralized and decentralized system depends upon the circumstances under which you are doing your business. after checking all the advantages and disadvantages you have to make your decision that which is suitable to your business because in some cases centralized is suitable and in some decentralized is preferred.

[5]

HOW DO WE KNOW THAT BLOCKCHAIN IS CENTRALIZED OR DECENTRALIZED

We can check that which system is centralized or decentralized by simple method by etherscan as explained by prof. in the crypto lesson .

=> Search etherscan in the google as i have searched in the screenshot you can see.

=> After reaching the website search the paste company token address.

As i have searched binance .

=>paste the token address

=> Then click contract which is below the page .

In coding you can learn every information about the blockchain . As i have checked that binance is the centralized blockchain .

So this was my complete task of week01 by prof. @yousafharoonkhan. I hope that you will like my post and show me your support.

SPECIAL MENTIONS:

@yousafharoonkhan

Author :@qamarsudagar