Centralization is a system which has a central authority in control of data and function in the platform while decentralization is a system that gives the users full control over their data. Both centralization and Decentralization have their advantages and disadvantages, and users are left to appreciate the area of their priorities.
CONTROL
Centralization | Decentralization |
Full control stays with the central authority. The authority defines what happens in the platform | Control stays with the users. The users are in control of what they do in the platform |
ANONYMOUS
Centralization | Decentralization |
Users are not anonymous. Whatever happens on the platform is fully supervised | Decentralization offers anonymity to users |
HACKABLE
Centralization | Decentralization |
One issue with centralization is the lack of trust. Centralized platforms are more prone to hacks and data leak | unless centralization , decentralization offer more security and is less prone to data leaks and hacks |
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Disadvantages of Decentralized Blockchain/Platform
- The cost: Setting up a system that can make communication easier costs much, this makes decentralized systems cross budget sometimes to ensure the system is up and running.
- Volatility: Decentralized Blockchain often shows a volatile behavior where prices fluctuate a lot.
- Crime- Since everything done on the system is anonymous. This can lead to misuse and crime.
Advantage of Centralization
- Reduced cost: Centralization, unlike decentralization, requires less support and cost less. There's always a preplanned cost and the authority ensures whatever they're maintaining do not cross the allocated budget
- The Command chain is clearly defined in a centralized system. Every user understands their roles and who to report to. It's easier making delegation in the chain.
Each system operated on has their setback, but it's possible to incorporate some of the factors from the other to ensure a better network.