Introduction

Hello Steemians,

Welcome to another week in the Steemit crypto academy. I attended the lecture by the crypto professor @yousafharoonkhan as the professor based his teachings on Decentralized and Centralized system , Advantages & Disadvantages and which one is best for business? This blog is my homework task after the completion of the lesson. Here I will be discussing based on my understanding the on the above topic.

Source

Question no 1 :
Write the definition of Decentralization and Centralization in your own words. Explain these two systems in your own words.

  Centralized system can be seen as a system where components can not function independently but rather gets it orders and control from a central server. This implies that users don't have control over their keys. More also, we can see centralized system as an organization where the power for planning and decision-making is vested entirely in the hands of the governing council or senior management. It is important to mention here that all the power and authority is kept at the highest level. Furthermore, we can say that centralized system has it's flow of communication in an upright manner. This makes both the middle and lower management to submit to the highest authority.

  Decentralized System can be seen as a type of system where power is not centered on one place. Unlike the centralized system where users account are managed and controlled by a central figure, in the case of decentralized system, users have complete access and control of their account and as such can make or alter changes at will. It is also important to mention here that decentralized systems has it's flow of communication designed freely. This implies that since the control is not vested on a particular person, organization etc, the decision making process will be faster and yet not complex. Finally, it is important to mention that in most crypto currency wallet, the technology adopted is know as decentralized system.

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

For some reasons, I can say that both centralized and decentralized system are very important. But despite their importance in the crypto space, there is still some differences between them. For the sake of these lesson I will be showing them clearly in a tabular form below.

S/No	Factor	Centralized	Decentralized
01.	Flow of transaction	Here data flows vertically	Here it is quite open and free
02.	Decision Making	Slow in decision making	Fast in making decision
03.	Firms	suitable for small sized firm	suitable for large sized firm.
04.	Hacking	Always open to hacking	You alone have complete control over it hence saves you from been hacked once your keys are well kept.

Question no 3 :
Write five Advantages and five Disadvantages of decentralized and centralized system.

Below are the list of the advantages of centralized system.

1. There are group of expert which take decision for the entire users. Since they are expert their decision is believed to be for the favour of all.
2. Low cost in operation as against decentralized with a bit higher cost.
3. Due to the rules set in these system it is expected that the system perform even more better.
4. Work quality here increases since they work using a set of rules and decision.
5. A centralized system always focuses on it's vision to make sure it achieve it.

Below are the list of the disadvantages of centralized system.

1. Users have no full control over their account
2. Involves third party when even you want to carry out any transaction
3. Users can only perform few functions on the blockchain as many functions are restricted for their use.
4. It is always at the risk of been hacked by hackers at any point in time.
5. A central server controls all the system connected to it hence any issue in that server affects all.

Below are the list of the advantages of decentralized system.

1. There is more safety when compared to centralized.
2. Users have complete access to their account.
3. No central decision making spot.
4. No third party when it comes to carrying out transactions.
5. It is also very scalable in nature, hence allows users to perform as many operations as necessary.

Below are the list of the disadvantages of decentralized system.

1. Decision making is not done in time here as there is no central body responsible for that.
2. High cost of operation as compared to centralised.
3. Price stability of assets here is very low as compared to that of centralized.
4. Users security is totally dependant on their self hence any issue is solely their concern.
5. Price fluctuations hinders complete utilization of decentralized system.

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

After studying both system and going through their merits and demerit, I have come to conclusion that both system are good for business/trading. In view of these I have been able make a further research hence I came up with the conclusion that despite the fact that both are use for trading I prefer decentralized with the following reasons.

• No delay in transaction as there no third party to delay any form of transaction.
• Decision making here is very fast and execution is fast as well
• Scalability of the system that is many transaction can be done at same 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.

Here, I will be using the very simple steps and approaches lied down by the professor to check weather or not a particular is decentralized or not. For the sake of this class I will be using Tron for the example to check weather or not it is decentralized or not. The steps are listed below;

• Step One

Visit etherscan.io

etherscan.io landing page

• Step Two

Locate the search field.

And paste the Tron contract address.

Click the search icon.

Tron contract address: 0xf230b790E05390FC8295F4d3F60332c93BEd42e2

Search for the contract address

• Step Three

You have the contract details displayed.

Click on contract.

Tron contract details

• Step Four

Search the code for function destruct.

Search the source code

The function destruct was not seen which means Tron is a decentralized protocol.

Conclusion

In conclusion, it is important to draw comparison between decentralization and centralization and at the same time knowing each importance to making a good decision as at when needed. My appreciation goes to the crypto professor in the person of @yousafharoonkhan for such a wonderful lecture.

Special regards;
Cc: @steemitblog
Cc: @yousafharoonkhan

Thanks for reading...