Steemit Crypto Academy Season 2, Week 1 Homework on: Centralized and decentralized system, advantages and disadvantages and which is better for business


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DECENTRALIZATION

Decentralization can be termed as a system where individuals in a society, community or group are given the freedom to carry out their decision making process themselves. It involves a free trade system where everyone involved has a right . No body is under influence as everybody share the delegated power. They have a say over the affairs of the society. They do not have a governing body that gives rules and regulations on how to run their affairs. The decision making process,lies in the hand of every individual in that very society.
Every individual in a decentralized community, is not influenced by another or a governing body.They share power. Power is vested in the hands of every individual. They make decisions without being intimidated by any higher power.
In this society, they are permitted to form a team,where they get to rub minds together and pull ideas when a task is tabled. Communication is common amidst them and each member becomes easily trained/enlightened in the process.This might take effort and time,but it helps and carry each member along with the gr

ADVANTAGES OF DECENTRALISATION*

NO OPPRESSION
In a decentralized environment. There exist no form of oppression. This is simply because every one is a stake holders and individual decision directly affect results. It also means a free entry and exit in the system.

Even workload
The work load is shared among its members. Not a particular set of people. DECENTRALISATION shares it's complexity among every individual in the community thereby not pushing its work load on any set of executive.
This allows everyone in the society brainstorm on tasks.

Fast decision making
Everyone in a decentralized community has the authority to make decisions at any point in time.
So decision making doesn't need to go through any long process before it comes to an actualisation.
It can be decided at any point and can be enforced.

IT ENABLES EFFICIENCY

Decentralization will definitely allow its members bringout their best .This will be the goal of each member.
Decentralization gives room to the list member to have a say.It touches the grassroot level. They are all given opportunity to view their points and make decisions. All members air their views without being intimidated by another party.The community becomes healthy enough, free from oppression, strife and unhealthy competition. This will being about productivity.

INDIVIDUAL TRANSPARENCY AND ACCOUNTABILITY
There is individual accountability and transparency in the system Every individual is subject to his or own decision as the positive or negative decision directly affects the individual.

DISADVANTAGES OF DECENTRALIZATI ON

TOO OPINIATED
There will be too many opinions/ uneven opinions. Everyone gets to do things based on their perspectives at any point in time. This might lead to a non cooperative society.
Therefore, decentralization leads to uneven policy formulation.. polices becomes flexible and can be changed at any time.

NO COORDINATION
No coordination an uniformity in such a community. It lacks basic communication skills.

FREEDOM OFTEN LEADS TO STRUCTURAL DIS ARRANGEMENT.
Unlike a centralized system where there exist strict structural arrangement, a decentralized system is not governed by a set of people. Everyone has a right to decision making and this sometimes leads to too much slack in structural arrangement.

COMMUNICATION
Most times, communication takes a lot and can be highly cumbersome sending everyone the same information.

DISORGANIZATION
Due to lack of centralized channels, disorganization might be the order of the day and this leads to unhealthy structural alignment.

CENTRALIZATION

DEFINITION OF CENTRALIZATION
Centralization is a case where by authority is vested in higher ranked individuals. The entire decision making is solely in the hands of a certain group of people . In this case, not everyone has the opportunity to make vital decision.organizations often use one individual to make decisions and provide directions. Decentralization is a case whereby individuals are entitled to make decisions on their own without external influence . while a decentralized structure often have several individuals responsible for decision making. In a decentralized system, there is no fear of intimidation as everyone involved has a say over the affairs of the running of the system. Everyone acts freely and can make decisions.

ADVANTAGES OF CENTRALIZATION

Cost Reduction
In a centralized administration, the decision are borne by the centralized decision makers. It involves using standard procedures and methods to manage the administrative roles , it helps to reduce costs manege the finances effectively.

Focused vision
In a centralized organization, the focus will be solely on growth. The lines of expressing communications are clear. The visions are properly channelled without any hitch. There also exist consistent relay of messages to employees. All stakeholders such as employers, employees customers receive the same information.

clear chain of command
A centralized community or society benefits from a clear chain of command because every person within the community or society knows who to report to. Those at the grass root level,know who to approach whenever they have concerns about anything. On the other hand, senior executives follow a clear plan of delegating authority to employees who excel in specific functions. The executives also gain the confidence that when they delegate responsibilities to those under them,there will be no overlap. A clear chain of command is beneficial when the organization needs to execute decisions quickly and in a unified manner.

Uniformity of action
This is possible when decision-making authority is centralized. The decisions taken at the top will be put to work at every level. There may be more than one unit under the same management and it may be desired to have same types of policies and procedures. If the units take their independent decisions then uniformity of action will not be achieved. Under such situations centralized decision-making will enable unity of action.

COORDINATION
Co-ordination of activities of various segments is also facilitated by centralized management. In the absence of centralization, different segments may pursue their independent policies. This may result in disunity and disintegration. Different segments may emphasize their own goals only without bothering about organizational objectives. Centralized management will help in coordinating the work of different segments in such a way that organizational goals are achieved.

DISADVANTAGES

Delay in decision making
Due to the fact that decisions have to be approved by a few, this tends to slow the pace of decision making. This leads to unnecessary delay in establishing plans that would ordinarily be taken by personal initiative.

Destroys Individual Initiative
Centralization revolves around one person only. One man takes all the decisions and decides the modes of implementing them. Nobody is given the authority to use his own judgment even if there are glaring lacunae in the decisions. It destroys initiative of subordinates. They do not make any suggestions and just carry on with whatever has been conveyed to them.

Burden/ work load on a few
This system gives all responsibilities to few persons in the organization. They remain over-burdened with routine work while sub-ordinates do not have sufficient work. The centralization of all powers do not allow the chief executive to devote sufficient time for important tasks of planning, coordinating and motivating. In a decentralized set-up routine matters are left to the subordinates and manager concentrates on important administrative work only

Prompt Emergencies Handling
At the time of emergencies, centralized decision-making works as a quick because there is no time for consulting others.

Concentrated power and authority.
Communication and delegation is just in the hands of top executives. Thier mistakes and shortcomings means an automatic failure for the whole structure.

DIFFERNCES BETWEEN CENTRALIZATION AND DECENTRALIZATION.

1.CENTRALIZATION gives the power/authority to delegated members of the society. Decision making and policy formulation/everything that pertains to the society.
In DECENTRALISATION, power is vested in the hands of its members.

In CENTRALIZATION, the top executives share the labour just among themselves not minding the view of others.
In DECENTRALISATION, all members pull ideas together to achieve their desired goal. Communication among individuals is common.
In a centralised society, decisions are rigid not flexible enough
In a decentralized community, decisions are subject to change.

HOW TO KNOW IF A BLOCK CHAIN IS DECENTRALIZED OR NOT.

Step 1:
Go to google page then type https://tronscan.io/

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Step 2:
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Step 2:
after opening the given site ,then look at the below screen shot and paste company token contact address.

Step 3: check trinscan blockchain that it is decentralized is or not

step 4; click on Contract

step 5; check Contract Source Code (Solidity) below in coding, area if you see

in coding area you'll see every detail about the blockchain,

in coding you will search in the coding function destruct only administration,self destruct , if you see this type of wording in coding area about any token,, its mean this system is not fully centralised . so it was easy way to check the any token that it is decentralised or not.

Trons token look decentralised because in coding i did not find these coding .

WHICH IS BETTER FOR FREEDOM AND TRADING AND WHY.

I would say it depends majorly on the choice did business ventured into, the question which is better ,is a trick one and can be best answers by self. Although personally, I have seen how a decentralized trading system paves way more than a centralized trading system. But as I earlier mentioned, it could be as a result of the particular trading I ventured into.

Cc: @yousafhsroonkhan


Comments 1


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

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  • you used copyright image in post

thank you very much for taking participate in the class

grade : 5

19.04.2021 10:16
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