Crypto Academy Season 2 Lesson 9 - Week 1 Homework Task Article for Professor @yousafharoonkhan | Topic: Decentralized and Centralized system , Advantages & Disadvantages and which one is best for business?
Hello Steemians,
I’m so happy with crypto academy back with the season 2, week 1 so we can all continue the good work.
I have read through the lecture and made sure I understood it so I can present a good and detailed work.
Decentralization is a system where power is not one sided. Power, Authority and decision making is evenly distributed from the top to down of the chain. Every individual has the right to make their own decision without interference of other individuals.
Centralization is a type of system where power, authority and decision making is done only by an individual, group of people or organizations. People in the lower chain of centralized system does not make decisions themselves.
Centralized system has only one server which is easier to be hacked, unlike decentralized system which has zero chance of hacking with multiple servers.
Low burden of authority in Decentralized system is due to how power is distributed to all member, avoiding load on authority. Individuals makes their own decisions easing pressure on the high authority. In centralized system, authority makes the decisions for all individuals, making their work more difficult to handle.
There is easier in decision making in centralized system because it has only few members to make decisions. There is easy understanding between members on settling on a particular decision. Decentralized system has everyone make their own decision. This makes it hard to settle on a particular decision due to large number of individuals.
Total Command
Users have complete control over activities. They can make transactions without asking for permission from authority to do so.
verification process does not depend on third parties.
Reduced Burden
Decentralized system releases work load on the leaders on performing some activities. For centralized system, the authority does most of the workload when they can easily distribute most of the work to the lower workers.
Quick Decision Making
In Decentralized system it’s easier to make decision because every individual has the power to make their own decision, It doesn’t need the authority to take the burden on their selves.
Better Control
It gives individuals a sense of control and confidence in controlling what ever they want to. Makes them feel safe and secure.
Decentralized system gives individuals the ability to learn and experience while they control their activities. Helps them to be more decisive with their decisions.
Uniform policies not followed
There is no pattern or procedures in managing. Every individual has a special and different way to go about their activities.
Cost
Decentralized system increases the administrative cost due to employment of trained personnel. Decentralized system require high skilled employees.
Misuse of Authority
Misuse of authority is a major problem with the decentralized system. Every section of the system has its power to control its affairs. Most individuals use this power for personal gains.
Chain of Commands
This system demonstrate separation of powers. Every individual know where they belong in the chain of command. They know who is above them and who is below them. They know who to take commands from and who to give commands to. This system avoids conflicts.
Quality Decisions
We say quality decisions because those who makes the decisions are highly experienced and can make a good and quality decisions due to their experience in the field of work.
Fast Decision Making
There is more fewer people in this system to make decisions. Few people from the highest authority makes these decisions. Making it very fast to settle on a decision.
Decisions Lack Specialized Knowledge
Every person has a specialized field there are good at. As top authority makes decisions for all, they lack some knowledge and skills in the field there are not good at. Most of the decisions doesn’t meet the actual solutions.
Overload of Higher Authority
High authority have higher workload, due to how the system is. They take some task subordinate workers can manage themselves upon theirselves.
Lack of Trust
There is lack of trust in this system. Corruption and theft is one some of the reasons there isn’t trust in the system.
We have successfully know what centralized and decentralized system are. Now is time to choose which system is good for our business.
Before one gets into business, you have to consider the advantages and disadvantages of each system. This is very essential to have some basic knowledge in what you are going into. This gives you the balance to side with, because every system has it positives and negatives. So it’s up to you to choose the one that fits your business.
The time frame of the business is also one important factor you have to consider in choosing a suitable system for your business.
Another factor to consider is the capital in hand. Each system has it ways of management so does it have different cost. In Decentralized system it requires high skilled personnel and this makes hiring workers more expensive.
And also it’s important to know how much profit needs to be made in a business using a specific system. Compare both systems and knowing how much profit can be made in each system is also important on your decision making.
One has to consider these factors to be able to choose the right system for their businesses. Personally centralized system is good for businesses while decentralized system is good for cryptocurrency. Cryptocurrency most at times needs a decision to be made instant while
Businesses needs to be managed well by authorities to save money.
STEP 1:
Go to Google and type ETHERSCAN
Click on the first site
STEP 2:
Paste the name of the company token in the search box. Here I am pasting the contract token of Tether which is
Step 4
Click on Contract
Step 5
Check for contract source code(solidity). check for the following wording; function destruct only administration, self destruct. In this search I found them which makes Tether a fully centralized token.
We can confirm Tether is fully centralized because we can find the wording destruct only administration and self destruct
I can side with decentralized system with the above information. It feels safe and secure for business purposes.
I will like to thank @yousafharoonkhan for this impressive lecture. It’s soo informative and I have really learnt from it. Hope my assignments meets your standards.
#yousafharoonkhan-s2week1 #cryptoacademy #nigeria #steemexclusive #steemit
First respected student Thank you very much for taking participate in Steemit Crypto Academy Season 2, Week 1 course class..
grade :5