CENTRALIZATION VERSUS DECENTRALIZATION SYSTEM IN BLOCKCHAIN

in Steem Alliancelast year

Hello to everyone in this wonderful community today. I greet you all in good spirit and I want to believe that we all are doing just great today. I pay my respect to the community heads for all they do in uniting several communities with the help of this community.

Today I am here with another interesting topic regarding the blockchain and our topic for today is tagged centralization versus decentralization in blockchain. We already know what blockchain is and some of it features which we said it provides Security, eradicate third-party, Scalability and so on.

So we will be talking about Centralization versus decentralization in blockchain. This is an interesting topic that I will like us all to get familiar with and I will be having them one after another. Why not join me today as we begin this discussion together.

Before we hit the road, it is very vital that we understand the terms Centralization and Decentralization for this will give us an edge regarding today's discussion.


WHAT IS CENTRALIZATION?

Centralization can be seen as an aspect where authority is allocated to few individuals or a specific individual which dictates the affairs of everything and makes decisions to what should happened and what should not in a given situation. It is the channeling of authority to only one group of individuals whereby verdict are made without the involvement of others as they make certain principles and allow things to go their way.

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We can use the banking system for example. The banking system operates on a Centralized system of authority whereby all transactions are validated by individuals in power and these individuals decides what to happen or what should happen. They give a go ahead to your transactions and they equally decides what transaction you can perform at a given time.

They also monitor your transactions and your funds in your account hence they are in custody of your funds even though you own the account, they equally take control of what comes in and what goes out of the account. They also decide your transaction limit and when you can make transactions.

With the above, you can see in no doubt that a user even though be the owner of the account and the funds in it, the bank possess the key to your funds and may choose to deny you of your funds when something suspicious is detected and that is why there is a limit to performing of transactions as they get to monitor your transactions all the time.

Now the above example explains how centralization is and how it's been run in any given situation. Talking about centralization in blockchain, we are talking about a scenario whereby your assets, transactions is being monitored and despite the fact that you possess full right over your asset it can still be controlled by the authority governing the centralized system of the blockchain be it an exchange platforms or cryptocurrency wallets.

Since we have understood how this works it is expedient that we look at decentralization in blockchain.

WHAT IS DECENTRALIZATION SYSTEM?

Decentralization is a scenario whereby you as the owner is given private key to your account and as such, you alone possess the authority to gain access to your portfolios. It is a situation by which all authority has been handed over to you and you have the sole responsibility to perform any transaction of your choice.

The joy of decentralization is that it gives one the ability to make limitless transactions online that of the bank that limits users transactions or give a specific amount of transactions one could perform a day. The decentralization system enables of to perform transactions at any given time and those transactions can be executed by self without the involvement of a third party.

Unlike the centralized system, when you want to make any transaction you have to visit the office or bank to deposit or transfer funds and this activity has a specific timeframe that has been allocated for such activity to take place and when you don't arrive at the expected time, you will not be able to make that transaction especially during their closing hours.

In decentralized system one can perform all transactions irrespective of any situated office in fact most situation in which decentralization is seen especially on the blockchain, it has no physical office and everything is carried out using our devices just the way I am doing right now.

Decentralization has made things a lot easier for users to do things in the simplest manner and it is both considered the safest and the cheapest when it comes to performing of transactions and it provides or gives accuracy and enhance suitability.


I will have to call it a day now and when next I am here, I will be discussing the merit and demerits of both centralization and decentralization system in blockchain**. Thank you all for your time and I look forward to seeing you in my next class.

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  • Review: This is a nice post you have made on centralization and decentralization. Keep making quality post in our community


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