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Distribution vs decentralized blockchain systems is one thing that comes to mind when we talk about blockchain systems. Two different working systems, decentralization is a single processing method, whereas distribution refers to multiple decision-making points.

Even though they are two different systems; however, the decentralized system is part of the distribution system. The main difference is where decisions are made and how the distribution of decisions is sent across the various nodes in the system.

Cryptocurrencies are actively adopting a distribution and decentralized system to their advantage. All popular cryptocurrencies have such characteristics. But are they a must-have? Should the blockchain be decentralized or distributed, or both? In this article, we will talk about the differences between decentralized and distributed blockchain systems.

What is Centralization and Decentralization?

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Centralization is a form of organization or activity that has a central entity (central) where all decisions or authorities are in the hands of the central entity.
Meanwhile, decentralization is a form of organization or activity that does not have a central entity or is spread over many entities (decentralization) where all decisions or powers are not in the hands of a central (central) entity.

Blockchain itself is a technology designed to support decentralization by distributing all data to many entities (decentralization) so that all participants in the network system can participate without having to ask for approval (authorization) from the central (central) entity.

Cryptocurrency (cryptocurrency) Bitcoin is the first implementation of the blockchain. Where "Proof of work" is used to build a decentralized consensus or commonly known as the Nakamoto consensus.

One of the main advantages of decentralization in blockchain is security.
Where all data that has been stored and distributed to many entities is final and cannot be changed arbitrarily without the consent of the majority of the entities.

Example: It would be easier for someone who is not responsible to hack something that is centralized (centralized). Because he just needs to get in the middle. Meanwhile, to hack something that is not centralized (decentralized), he must hack the majority of entities that exist in the network system.

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The advantages of centralization

• In general, centralized networks can achieve greater efficiency than decentralized networks.

• In a centralized network, all data is routed through a central server, which means it can travel faster from A to B.

• The centralized network also offers a better user experience in terms of the time it takes to complete operations over the network.

• Resource Efficiency (both information and system tools)

• Avoid duplication of data, with centralized data / information not everyone can manage it so that no data is the same, this causes storage space not to be wasted.

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Advantages of the system Decentralization

• Blockchain technology uses a distributed network of nodes to store blockchain data. This means most of your blockchain data will be stored on thousands of different devices across a wide network.

Fraud Prevention

• Because the blockchain is like a ledger, and every transaction is recorded there.

Faster Transaction Time

• Blockchain-based cryptocurrencies provide transaction times that are often faster than bank transaction times. For some bank transactions

Better Financial Efficiency

• The decentralized blockade allows transactions to be carried out directly from person to person without the help of third parties.
  Of course, this can save a lot of people from fees charged by third parties if they want to make a money transfer.

Stability.

• A confirmed block is impossible to reverse, this means that once the data has entered the blockchain, it is very difficult to delete or change it.

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Disadvantages of a decentralized system.

• There are several potential attacks that could strike a blockchain network, and the 51% attack is one of them.
  An attack like this can occur when an entity manages to control more than 50% of the network's hash power

• Blockchain uses a public key (public key) or asymmetric cryptography to give the user ownership of a unit of digital currency (or other blockchain data). Each blockchain account (or address) has two matching keys: a public key (which can be shared) and a private key (must be kept secret). Users need private keys to access their funds, meaning they act as their own bank. If the user loses his private key, the money is automatically lost, and no one can do anything about it.

• The blockchain ledger can grow significantly bigger over time. Today, blockchain is growing faster than hard drive sizes. This means that the network runs the risk of losing nodes if the ledger size becomes too large for someone to download and store them. This is one of the advantages and disadvantages of blockchain technology that must be considered.

• Another problem associated with blockchain technology is data modification.
  Once you add data to this blockchain system, it becomes irreversible. While stability is one of the advantages of this technology, it shows that too much is not good either. This is one of the advantages and disadvantages of blockchain technology that must be considered.

• Storing blockchain-based cryptocurrency can be a problem for people who are not tech-savvy. Crypto storage is simple, you only need to buy a wallet or purse. This is the name for a place to store assets. There are various types of wallets or wallets.

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Lack of a centralized system.

• Not only do you have control, third parties or other people, also have control over your assets.

• In a centralized network system, hacking and data theft are possible.

• Limitations in fulfilling the information needs expected by users. In this system, there is a grouping of priority information that cannot be obtained by just anyone.

• Limited capabilities to meet user needs.
  The length of time it takes to cycle through the information.

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Which one continues is better for business and commerce.

Talking about which one is better depends on the point of view of each.

Both systems are decentralized and centralized, each with its own strengths and weaknesses. Therefore, it could be that such a system is profitable in trade / business or other fields.
Decentralized systems may be more profitable in commerce or in other areas. We have to act accordingly, I cannot say that a decentralized system is more profitable than a centralized system which is less profitable.

But for now, the central system may be a little more advanced for businesses. Because the central system is more profitable than the decentralized system. They may be more profitable in trading for now. But I think a decentralized system will be much more profitable for trading in the future. Because they will become more popular. They will become more common. More people will start to be interested and use it. to a decentralized system.

Regardless of all that, which one is better, you should do your own research in this regard. Which one is more suitable for you.

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How can we know if the blockchain is centralized or decentralized.

It's easy to tell whether a blockchain project is a centralized system or a decentralized system. You can see one of the examples I've shared below. In this case, I will go through the process via the Tronscan.org website. I will review the TRX crypto.

Step 1:

Enter the google page then type the keyword tronscan.org As shown below

Step 2:

after opening the site then proceed by pasting the company's token contact address.

STEP 3

Then click the contract link, in one of the two options, as shown in the image below.

STEP 4:

If it looks like the image below

In this case, it looks like the crypto token I chose is decentralized

Image source

Conclusion

Centralization and Decentralization both have important roles. There are things that it might be better to use centralization than decentralization and vice versa. It's just a matter of thorough assessment, research and experimentation to choose which one is more suitable.

For now, decentralization is more attractive now that, for over hundreds of years, centralization has ruled the world. This is one of the reasons cryptocurrency in general is so much fun. The many technologies offered by different altcoins will change the worldview, solving problems that a centralized system cannot beat

That's all I can say about hope it's useful. Thank you as usual.

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Regards @zanis

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Cc:.
@steemcurator02
@yousafharoonkhan