Hello Steemit Crypto Academy Community,

I continue to attend courses. Professor @yousafharoonkhan from the central and decentralized system in the course article. He talked about its differences, advantages and disadvantages. He told me which is better in trade. He also showed us how to tell if a blockchain is decentralized. I asked us to prepare homework on this subject. After reading the professor's course article, I did my research. Now I'm writing my homework.

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Write the definition of Decentralization and Centralization in your own words. Explain these two systems in your own words.

With the development of blockchain, the concepts of centralized systems and decentralized systems have become very popular. Now I will explain to you what central systems mean decentralized systems.

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In central systems, control belongs to someone else. Banks, for example, have a centralized system. Although the money in the bank account belongs to you, the bank can block your bank account with the push of a button. Your money is completely under the control of the bank. There is an authority in front of us in central systems. There is a dependency between you and the central system. You have to get some kind of permission to do something.

In decentralized systems, control belongs entirely to the user. Decentralized systems emerged with the development of blockchain. You do not have any authority. The right to use and the savings are realized in line with the wishes of the users. You do not have any interlocutors. In decentralized systems, you do not need to make an appointment, prepare or organize any documents. Because you have no power in front of you. There is nobody but there is freedom :)

Explain in your own words the difference between decentralization and centralization system Or Compare both in own words.

You can immediately feel the presence of authority in central systems. In decentralized systems, however, there is no authority. It is not possible to talk about freedom in systems with authority. Therefore, centralized systems are anti-freedom and decentralized systems are pro-freedom.
In central systems, control is not at the user. Control is in the top management. In decentralized systems, control is entirely at the user. The user can act as he wishes in line with the possibilities. He can do what is in his heart. Central system provides your security in central systems. In central systems, individuals are also responsible for security. Ensuring security in decentralized systems is entirely up to the user.

Since the control is not in the user in central systems, situations such as censorship and prohibition occur. For example youtube is a central system. He can remove a video he has uploaded from the platform. It can do this even if you follow the rules. Has the authority to use censorship and can act without loss. Censorship cannot be imposed on Dtube, the video provider running on the Steem blockchain. Because Dtube has no effect on users and lacks the ability to censor.

In central systems, you have to issue a document, a confirmation or introduce yourself. For example, the bank is a central system and you have to follow a number of procedures to open an account in the bank. As you know, there are decentralized exchanges. We can do the transfers that we can do in banks, as well. However, you are not obliged to carry out any procedures in decentralized exchanges.

It is possible to change the data recorded in central systems. An official in the top position can do this. In decentralized systems, it is impossible to change the recorded data. Recycling is not possible.

Write five Advantages and five Disadvantages of decentralized and centralized system.

Advantages of decentralized systems;

Since there is no intermediary in decentralized systems, transfer operations are very fast. There are no scalability problems.
Transfer fees are low in decentralized systems.
Your funds cannot be confiscated in decentralized systems. Because it is not governed by an authority. You are in control of your funds.
In decentralized systems you have the opportunity to interact with people from all parts of the world. It is a global formation.
Decentralized systems overlap with the concepts of justice, democracy and equality. All users have a say in governance.
Decentralized systems have proven themselves in reliability. The probability of being hacked is low, although it varies from project to project.

Disadvantages of decentralized systems;

We said that in decentralized systems, the person is responsible for security. For example, if you lose the passwords of the steem blockchain, it is not possible to recover it, to restore the funds.
In decentralized systems, for example, in a decentralized exchange, you run into a liquidity problem. Because they are not yet popular and not known to everyone.

Decentralized systems are not useful. Because they haven't completed their development yet.

Advantages of central systems;

Advantages of central systems;

If you forget your password in central systems, you can access your password again. So you get your funds back.
Central systems are very useful. An ordinary 60-year-old person can use banking transactions. But trading on the blockchain is very difficult for a 60-year-old person.
Centralized systems are popular, so they attract people's attention. For example, liquidity and volume are very high in central exchanges.
It is difficult to get defrauded in central systems. When you are scammed, evidence is collected about who is the fraudster and the fraudster is caught.

Disadvantages of central systems;

Since there are intermediaries in central systems, you pay a high transfer fee. The trading commission is high.
In central systems, you may lose all your funds for reasons not caused by you. For example, hacking a stock exchange.

Central systems are likely to be hacked.

Transactions in central systems are not fast. A transfer fee can sometimes take days. You may have to wait for working hours in central systems. The documents you provide to verify your account in central systems can be used for illegal business. In addition, data can be edited very easily in central systems.

Which one is better for Business/trading and why? (write in own words)

Decentralized and centralized systems have advantages and disadvantages. Therefore, there may be times when such systems are advantageous in trade. Systems that are central to some trades may be more advantageous. Decentralized systems may be more advantageous in other trades. We have to act according to the profit we will make. We have to move accordingly. In other words, it is not correct to say that the centralized system is more advantageous or the centralized system is less advantageous.

For example, I see myself closer to decentralized systems. However, I must know which system is advantageous for me to be on that side. I have to expand my position to make more profits, to get better profits.

But for now, central systems may be slightly ahead for business. Because central systems are more advantageous than decentralized systems since they have been installed before. They may be more advantageous in trade for now. But I think decentralized systems will be much more advantageous in trade in the coming years. Because they will become more popular. They will become more common. More people will start using it. Decentralized systems had a disadvantage due to their unpopularity. As it becomes popular, disadvantaged parts will disappear. In central systems, commissions are high, and transfer fees are high. Therefore, in trade, the pointer will shift towards decentralized systems.

How do you know if a blockchain is decentralized or not? You can describe any method, but in your own words.

It's easy to understand whether a blockchain project is a centralized system or a decentralized system. There are enough tools available on the internet to question this.

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I'll show this the way the professor taught us. The name of the blockchain project I chose: 0x
I know 0x is running on the Ethereum network. I need a contracts address to look for 0x codes. I can find this out on Coinmarketcap.

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I reached the details in the picture using the Coinmarketcap tools. Now I click on the "contract" address I marked in the picture to access the codes.

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This time, I click on the place I marked in the picture and access all the codes. When I check the codes I see that 0x is a decentralized project.

Conclusion

The professor made a useful topic in this lesson. We learned detailed information about central systems, decentralized systems. It also showed us how we can access the codes of a blockchain project. After reviewing the codes, we found out whether this is a centralized or decentralized project. Thank you for his useful course. As I was studying the course and doing research, I also learned new things.

Cc:
@steemitblog
@yousafharoonkhan
@steemcurator01
@steemcurator02