STEEMKIDS CRYPTO ACADEMY WEEK 3/DECENTRALIZATION AND CENTRALIZATION/10% payout to steemkids
Hello my beautiful and handsome kiddies. It is another great week for all of us. Thanks to the steemkids that participated in last week's steemkids crypto academy.
In our first lecture, we discussed that Blockchain is a decentralized distributed ledger system where information or data is stored. From the definition, we see that blockchain is a decentralized system. What makes a decentralized system better than a centralized system?
Decentralization is a condition in which the power or control of activities within the system is not in the hands of one person but by several persons. That is to say when it comes to taking strategic and executive decisions, it is not left for just a particular person to dictate or take the decision, rather, many persons delegated with powers come together to take these decisions.
So in a decentralized system every one can make his own decision, and there is movement of power from bottom to top. No one controls the other, each persons decision is independent of the other. Also in a decentralized system, for a decision to be taken so many are relied upon to take their own personal decision.
Additionally, in a decentralized system, no third party is involved in its transactions and the system is less susceptible to hackers. The users in a decentralized is not known, neither can they be identified by another person within the system. Because of the decentralized nature, the system is more difficult to use when compared to the centralized one. It will not be very easy to shut down its operation since decisions cannot be taken by one person.
This can be said to be a system where the authority or power is in the hand of a singular person or organization. Any decision whether it be executive, strategic, planning and execution is taken by an individual or by one organization amidst others. Normally, power flow is from top to bottom, the authority becomes the central point of focus.
In a centralized system, a third party is normaly involved in its activities with other entities. The fact that the power is centralized and at a central point makes it vulnerable to the attack of hacker. Because hackers know, that once the head is hacked, all other parts have been infiltrated. Additionally, all the players in a centralized system are known and the system is very easy to use. The demise of the authority can lead to end of that particular organisation, since its operation is wholly dependent on the central authority.
Advantages of Decentralized System
● Identity of users are not revealed or known by other users.
● There is high security since it is difficult to hack a decentralized system.
● the system reduces the burden of decision taking as it is spread among many users.
● Transactions in a decentralized system are more efficient and effective.
Disadvantages of a decentralized system
■ Since users cannot be identified, they can use it to perpetrate fraud and crime.
■ The cost of running such a system is normally high.
■ There can be much conflict within the system if not properly managed.
Advantages of a Centralized system
◇ It does not take much to run the system
◇ Since decision is from a central point, execution and implementation is very easy.
◇ The rate of fraud is reduced if not totally eliminated
Disadvantaged of a Centralized system
♡ The information in a centralized system can be easily hacked, so the security of data is less
♡ There is the danger of lack of trust amongst the individuals in a centralized system
♡ the entire system could be shut down easily by the central authority for his own personal gains, etc
We can now see why blockchain being decentralized is the best thing ever. This is purely a technological revolution of how things are done, from conventional ways to new ways. It will affect the financial sector, educational sector, health sector and all the other sectors of the economy.
Define Decentralization and Centralization
Kindly list their differences
List the 5 advantages and disadvantages of both a centralized and decentralized system
Must be a verified steemkid
Assignment should done using your steemkids verified account
Ensure there is no plagiarism.
The post must be in steemkids community.
Kindly tag me in your post
resteem and drop your link as a comment for the post.
use the following tags as the first four tags:
The number of words should not be less than 200 words.
Entry will be closed at Saturday 2nd October, at 11.59pm GMT.
30 Liquid steem to be shared among the participants.
The bests posts stands the chance of being selected for quality posts of the day.
Looking forward to a great time with you all in steemkids crypto academy.