Centralized and Decentralized Explained

When it comes to explaining what centralization and Decentralization means, many find it difficult to explain to others, especially in the crypto world, where many ICO claimed to be decentralized and if we look carefully into their system of operation they are not actually decentralized. They still practiced centralized. For newbies in blockchain technology, we need to understand the clear picture of what truly decentralized system is all about. It is very important to know this before we invest our hard earn money on any ICO that promised that they are decentralized. If you know the difference between the two, I think it will guide you to investing in genuine decentralized ICOs. Without wasting much of our time, let us look into the two:

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What is Centralization?

This is a process where governing power of an organization, community or society is concentrated in a central authority which is smaller percentage of the whole organization population. When it comes to decision making, not all can make governing decision, important decisions making are carried out by the central power of an organization, and not by the public.

This central power can only seek the opinion of the public at the pre-decision stage for them to make effective decision. The central power have power to choose maybe to act upon public opinion or to neglect it, especially if it will not favour what they want as an output of their decision.
For instance, A company is own by Mr. A and Mrs. B. Products marketing, productions among other functions that can be delegated to heads of departments, but very important decision like closing the company, company extension, among other vital decision are done by Mr A & Mrs. B only. That is the clear picture of centralization. Another key example is our national governing system, where laws and decisions are made at the top level by the representatives of the public and not all the public.
In summary centralization is the delegation of authority and decision making too few people at the top managerial level, where policies are formulated and implemented.

What is Decentralization?

Due to how blockchain technology is trending and becoming famous more and more every day, the word “Decentralization is one of the top pop word on search engine today.
Decentralized system of governance is very complex. On the other hand, it is the systematic or classical way of delegating authority and decision making to all managerial level of any decentralized organization or community. I can say Decentralization is the true practice of democracy. Public opinion and input are taken seriously when it comes to making major decision on any matter. Delegation of authority and decision making are shared from the top to the lower management level. Equal distribution of power. All have right and role to perform.
Decentralized is not complete until authority has been diffused to the lowest management level. Sharing of powers and authority with all members of the organization. For Instance DASH and SMartCASH Including our Awesome Steem Ecosystem practice this decentralized system. Let take a look at Steemit as a decentralized social network platform that reward users. When @dan @ned built the steem blockchain they have the power to exercise all authority and decision making on the platform, but they denied themselves of that right because they want it to be decentralized in order to make a difference from the way the traditional social platform has been denying their users rights and rewards. This tow genius @dan @ned leave decision making to the public to share equal right of making decision according individual ability and capacity (Everyone is a boss). You can start any project or build any app on the platform without waiting for the approval of the platform creators or developer, which is not possible is a centralized organization. Decentralized is a freedom word, and that is what blockchain is all about.
Decentralization is also a system where all member do not need to wait for directives from anybody before they take any action in the system. No institution, government or call it anybody have right over anybody. You can do things on your own. Another typical example is Ethereum Blockchain.

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Advantages of Decentralization

Let us take a look at some Advantages of Decentralization:

1. In a decentralized system, operations can be coordinated at divisional level which is not possible in the centralized system.
2. There is less work load on the top management level as in the case of centralized system, because delegation of authority and decision making has been diffuse from top to the lowest level of the organization.
3. There is greater force of motivation, because you are not under manipulation or any form of pressure from any top level. You are acting on your own, so there is always great commitment to work.
4. There is always extensions of rooms to accommodate more talents.

Conclusion

Centralization and Decentralization are not the same. Decentralization always guarantee freedom unlike centralization where you have to wait to take order from the top rank or central authority. Lots of opportunities and advantages are attached to decentralized system as stated above.

Thanks for reading.

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