Greetings to everyone on the steemit platform. I express my delight over the resumption of @steemitCryptoAcademy courses and homework.
I see this as an opportunity to have an indepth understanding in the world of cryptocurrency not necessarily earning from homework posts. Thanks to @steemitblog for the timely update.
For the season two of the homework post, I am here to submit my homework for @yousafharoonkhan after an understanding of the course presented by the professor.
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DECENTRALIZATION AND CENTRALIZATION
Decentralization is simply the process of putting power, authority or choice of decision in the hands individuals that make up a sysem. In decentralized systems, every member of the system has control and the right of decision over his assets. In Decentralized system, no central body makes decision for the whole system rather, every member of the system takes individual decisions. Blockchains of coins that are decentralized are controlled by different individuals who have assets in such coins. Even the prices or value of the coins are controlled by the individual possessors of the coins.
Centralization is the process by which the power, authority and decisions making is vested on a higher authority. As the name implies, a central body controls the system and decide on what the system does. Blockchains based on centralization have a higher authority usually formed by people who invented the blockchain that controls the affair of the system. Everything that happens on such blockchains are usually traced to those authorities. We have centralized coins and exchanges of different types.
DIFFERENCES BETWEEN DECENTRALIZED AND CENTRALIZED SYSTEMS
Decentralized System | Centralized System |
Decision is made individually and for oneself | A higher authority makes decision for every member of the system. |
There is an open and free flow of information between members of the system | Information flows hierarchically from the top to the down. |
Decision making is very fast | Decision making is very slow. |
In decentralized systems, a higher number of persons are involved in making making | In centralized systems, only a few persons are involved in making decisions. |
Multiple conflicting decisions leads to consistent instability of the system | As a central authority makes decision, centralized systems are very much stable. |
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Advantages and Disadvantages of Decentralization
Everyone is empowered to make decisions | Conflict in decisions among individuals of the same unit. |
Employees or people who works under decentralized systems gains better satisfaction | Instability of the system because of multiple conflicting decisions |
Better productivity is guaranteed in decentralized systems | Members work in isolation - this may make work burdensome and also cause boredom. |
It allows low-level workers to gain leadership skill | It is only ideal for organizations with many members. |
It gives room for more members to be added into the system | It requires more capital to fund and establish. |
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Advantages and Disadvantages of Centralization
Gives workers a well defined blue-print of work to be done | Does not give room for personal development and improvement. |
Conflict in decision do not really occur because a higher authority makes the decision | It takes a longer time to arrive at a decision as top members need to to gather, brainstorm and make the decisions. |
Centralized Systems work with goals and objectives making it easy to remain focused | Only the central authority carries the burden of the system. |
It is relatively stable as decisions flow vertically from the top downwards | Members of the system are likely to be sacked or retrenched. |
Makes better for the achievement of the system objectives per time | Only suitable for a small number of workers. |
Which One Is Better For Business and Trading and Why?
From my understanding of the two subjects, centralization is better for Business that involves an organization because the goals or aims and individuals objectives of each unit of the organization can be easily achieved when some persons over see the affairs of the organization.
While for Trading, especially cryptocurrency trading, Decentralization is better. Reason being that there comes a time in trading when one need to take very quick and sharp decisions. If one is trading in a decentralized system, taking such decisions will not be an issue.
HOW TO KNOW IF A BLOCKCHAIN IS DECENTRALIZED OR NOT.
From your teachings prof @yousafharoonkhan, I can deduce that for one to be able to know if a blockchain is decentralized or not, these steps shouldnbe followed.
Go to a browser e. g google chrome and write the address etherscan.io
Copy and paste the wallet address you wish to search and click search.
After searching, click on contract.
You can now check below the contract source code to read the codes information displayed to get what sort of blockchain it is.
Function destruct or self destruct in the coding means the blockchain is partially centralized but more decentralized.
This is my entry, thank you.
Cc: @steemitblog
Cc: @yousafharoonkhan.
First respected student Thank you very much for taking participate in Steemit Crypto Academy Season 2, Week 1 course class..
you wrote very well this work, i appreciate it but question number five was also practical and you have not explained it properly.
Ratting : 7
@yousafharoonkhan thanks for your comment on my assignment post.
Do I still have the chance to work on it?
Great work, keep the move
@tmighty although I'm a cryptocurrency enthusiast but I'm not too familiar with the technicalities surrounding Blockchain technology. I guess that's why I couldn't spend more than three weeks on Crypto Academy. They are doing a great job there collectively enlightening our intellects on this novel innovation. I sincerely appreciate this your lucidly written and very informative piece on decentralized systems. Thanks for sharing and I wish you success with your homework. Have a blessed day.
Good information, keep it up.