Steemit Crypto Academy Season 2 Week 1 task by @sadiqxylo: Centralized and Decentralized Systems

Hello everyone!!

I deem it a great honor to participate in this week homework task by prof @yousafharoonkhan. The detailed lesson was very comprehensive.

Question No 1: Defined Decentralization and Centralization in your own words. Explain these two systems in your own words.

DECENTRALIZATION

source

Decentralization means an organization or company in which every participant has the power to either agree or disagree on any decision. Such organizations is not based on any solely authority. Nobody has the power to alter any change in the organization without the awareness and support of all the community. No central authority is owning the network, that is, anyone can participate and contribute to the network. The decision and power are given back to the individuals and most of the time decisions are made via election or voting. A good example is a democratic system, all individuals has the power to elect their leaders by voting.

CENTRALIZATION

Centralization is a system which is connected to a central node. The decision and authorization is solely dependent on the central node. Since management are the only authorized party, others, including the general public are not included in decision making. The network and structure access is limited to these reputable and people with high credibility to govern the network. A good example is a private business, the owner has the solely power to replace any worker at any point in time without consulting anybody.

Question No 2: Explain in your own words the difference between decentralization and centralization system Or Compare both in your own words.

Difference Between Centralization and Decentralization

Decentralization	Centralization
Decentralized system is not easy to implement but has an advantage over the centralized system on a large business scale.	Centralized system is easy to implement and is helpful for a small business.
Decentralized system saves the information on servers throughout the network in a set of blocks linked to each other.	Centralized system saves all the information in its base or central node, all the informations are saved in one place.
All the decisions are made by the contribution and consolidation of the whole organization being it higher or lower authorities.	Decisions are made by only the the heads of the organiztion. investors has no say in decision making.
No intermediaries are involved	Intermediaries link investors and management.
In a decentralized system, the burden is shared over all the community.	In a centralized system, the burden is geared towards a particular group or community.

Question No 3: Write five Advantages and five Disadvantages of a Centralized and Decentralized Systems.

Advantages of the Decentralized System

• It has a high-security level. Hackers cannot easily penetrate it. Data Integrity and Security is the most important thing in Decentralization.

• This system eliminates intermediaries so users can carry out transactions from person to person without dependence on anyone.

• In decentralized systems the whole work is divided to all the organization which facilitates users.

• Everyone has the right to start their own project here in the decentralized network.

• Reliability is the big advantage in a Decentralized System. In a Decentralized System, if one system is not functioning its alternative system can fulfill others' requirements easily and faster.

Disadvantages of the Decentralized System

• Decisions may become difficult because everyone has his different point of view.

• There are no proper rules and regulations provided by the proper channel and everyone makes its own rule.

• The cost of the system is higher than a centralized system.

• The user is responsible for his account and his security, in case of hacking he has to face it alone.

• Crime and Theft since users identities are to verified before participating.

Advantages of the Centralized System

• It is less prone to crime because the identities of each user are verified before each transaction.

• It facilitates smooth and consistency in day-to-day working of the organization.

• Centralized organizations are stable because the decisions only come from the head office.

• There are proper rules and regulations provide by the higher authorities and everyone has to follow them otherwise they cannot survive here.

• A fewer number of people is enough to control all the system. Because data is stored only in one place so it's easy to manage it and reduces cost.

Disadvantages of the Centralized System

• If the central server goes down in the centralized system, all transactions are paralyzed.

• There is space between investors and policy-makers. Customers only meets workers who don’t have the power to make decisions.

• The user does not have complete control over his assets.

• It slows down the functioning of the organization since it is only one man that implements decisions and his absence keeps everything on hold.

• In case of hacks the organization bear all the cost.

Question No 4: Which one is better for Business/trading and why? (write-in own words)

To my own understanding and what I have learned in the lesson and in my research, I will chose the Decentralized System.

Reason

In decentralized system users have the power to also involve in decision making and burden is not on a particular group in the system. Every portion of the system has it own specialist who controls it. Unlike in the Centralized System where only the privileged has the power to make decisions and in their absence everything paralyze. I am not a financial advisor, so I will entreat readers to make their own reseach.

*Question No 5: How do you know if a blockchain is decentralized or not? You can describe any method but should be in your own words.

From the detailed lesson I have found it very simple and easy when checking to see if a blockchain is Centralized or Decentralized. Below are few steps to fellow;
step 1
Open your browser and seach for etherscan.

Step 2
The homepage of Etherscan appears.

Step 3
put in the company coin contract address in the search box and then check the VRGold (VRG) blockchain to see whether it is centralized or decentralized

Step 4
click on contract and check on the contract source (solidity) below in coding area.

every detailed about the blockchain is shown and it indicates that such blockchain
is centralized.

CONCLUSION

From this lesson and my research, the new thing i have learned is how to check if a blockchain is centralized or not using etherscan. Also you need to make your own research when participating in blockchain business.

Thanks for your attention