Crypto Academy Season 2 - Week 1 || Centralized and Decentralized system || Homework post for [Yousafharoonkhan]

22일 전

Hello Steemians!

I hope you all are fine and having a great time in your respected lives. It's an honour to be here at Steemitcryptoacademy again after a short break of two weeks.

Yesterday, I learned about CENTRALIZED AND DECENTRALIZED BLOCKCHAIN by the post of our respected professor @yousafharoonkhan and here is my homework task in this regard. So let's get started without wasting much time.



Question no 1:

Write the definition of Decentralization and Centralization in your own words. Explain these two systems in your own words




Image Source

Decentralization is defined as the organization in which every node/unit has the authority of their own decision making. Everyone here is independent to make his/her own decisions. In decentralization, every node is connected with the chain and has the power of decision making thus every node is important in this aspect. No single node or individual can reverse the decision until the whole organization shows his support in this regard.

Have a look at the hand made diagram of decentralization which clearly shows that there is no main node or unit and every individual is connected with the chain on their own.




Image Source

Centralization is totally opposite of decentralization and it can be defined as the organization in which the whole system revolves around a single unit or node is known as centralization. In this organization no individual can do anything about it without accepting the order from the main node or unit in which the whole system revolves. In centralization, no individual has the power to make their own decisions.

Have a look at the hand made diagram of centralization below which clearly shows that the main node is in the center and every other unit is connected to the main node.



Question # 2:

Explain in your own words the difference between decentralization and centralization system Or Compare both in own words.


Difference between Decentralization and Centralization Systems:

Image source

As we all know that centralization and decentralization are two totally opposite systems. So have a look at the differences between both the systems.

Decision Making:

In decentralization all the decisions are made by the contribution of both types of nodes i.e: higher authority and lower authority. Both has the power of decision making.

In centralization all the decisions are made by the higher authority unit or the main unit. Lower authority nodes has no power of decision making

Communication Flow:

In decentralization the communication flow is open tree.

In centralization the communication flow is vertical.

Suitable For:

Decentralization system is suitable for large sized organization.

Centralization system is suitable for small sized organization.


In decentralization system decisions are done faster with the help of every single unit as compare to centralized system.

In centralized system decisions are done slower as compared to decentralized because of only one main unit or node.

Security Status:

Decentralized system is very difficult to help because of having no single authoritative unit. The security status of decentralized system is a bit better then centralized systems.

Centralized systems is a bit easy to hack and more prone to threats if we compare it with decentralized.


Decentralized systems has less stability because of different decisions.

Centralized systems are more stable then decentralized systems due to no difference in the decisions.

Power And Contribution:

In decentralized systems every nodes including higher authority and lower authority have the same power and contribution in the organization.

In centralized system only higher authority has the power in every aspect.


Question no 3:

Write five Advantages and five Disadvantages of decentralized and centralized system.

Advantages Of Decentralized Systems:

  1. Decentralized systems works very fast because of the involvement of every single individual.

  2. In these system both higher authority and lower authority have the power of decision making.

  3. Decentralized systems are more secure then the others and it is very difficult to hack or threat these type of systems.

  4. Decentralized systems are reliable as the data cannot be changed in these systems because every node is connected to another.

  5. Decentralized systems cannot crash whole organization if one node is corrupt.

Disadvantages Of Decentralized Systems:

  1. Decision making in decentralized systems are time consuming.

  2. Decentralized systems has less stability because of difference in the decisions.

  3. Everyone here in decentralized systems have different rules because there are no rules in decentralized systems.

  4. Everyone haqs their own decision or opinion which often results in complete failure.

  5. Decentralized systems are very costly and are not for small firms.

Advantages Of Centralized Systems:

  1. Centralized systems are stable because of non conflict of decision as the decision comes from the main node.

  2. There is no difference in any decision or project what so ever.

  3. Decision making in centralized systems are not time consuming because it directrly comes from the main node and every individual has to follow it.

  4. Centralized systems are cheap and also used in small organizations.

  5. In these systems there are same rules and regulations for every individual no matter it belongs from lower authority or higher authority.

Disadvantages Of Centralized Systems:

  1. In centralized systems there is no power of decision making in the lower authorities.

  2. In these systems the working power is a bit slow as compared to decentralized systems.

  3. These systems are not as secure as decentralized.

  4. Users do not have full control over their assets.

  5. Centralized systems can crash if one main node is corrupt.


Question no 4:

Which one is better for Business/trading and why?


If you want to know about which is better system in terms of business/trading so we must know the nature of the business because there are different factors that want to be addressed earlier before selecting the system.

In my view in some places centralized systems are good and in some other places decentralized systems are good and it totally dedpends upon the character of business. If you want a business strong decisions and a well timed solution making than centralization is best because decentralization slows down the whole organization but if you want a business for long term or to expand the business and want the system to be more secure then decentralization best for it.

The above explanation is totally my opinion abou it I would be wrong in it and if I am wrong do let me know in comments.


Question no 5:

How do you know if a blockchain is decentralized or not? You can describe any method, but in your own words.


Before investing in any coin we must know that if the coin is centralized or decentralized. Some steps are given below to know if the coin is decentralize or not.

At first took a coin for whom you want to search as I have taken curve dao token as my coin and then go to the page of etherscan and paste the token of the particular coin of which you want to know that if the coin is decentralized or not. Paste the token of the coin in the given box and search it as I have taken curve dao token as my coin.

Image source

After this step go to the option namely contract;

Image source

After that you will reach at the contract source code page.

So to know about the coin that if it is decentralized or not you just have to search only administration, self destruct, function destruct there and if these words exists in the source code than it means that the token is centralized and you do not found these words in the source code than it means that the token is decentralized.

Image source

As I took curve dao token as my coin so i search the particular three words in the source code of curve dao token and found nothing which means that this coin is decentralized.


Thats all from my post, I hope you guys like it and thanks for giving it a read.

Special regards;


Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  trending

First respected student Thank you very much for taking participate in Steemit Crypto Academy Season 2, Week 1 course class..

I have read your assignment very satisfactorily


  • did you get permission from source that you can use the above image to take participate in this class.

  • Suggestions: Any images used should be from copyright-free sources and fully referenced

  • there are many point rewritten

Thanks again for your effort, and we look forward to reading more of your writing.

Grade :7


Yeah sir I have taken this photo from copyright free source and the image source is also given below the picture.

Btw thanks for verifying my post♥️.