Today, we’re discussing the topic of Decentralized Vs Centralised- What is the difference? we can also call it CEX vs DEX
Decentralized:
• The transfer of control of an activity or organization to several local offices or authorities rather than one single one.
Eg. Blockchain networks, UniSwap exchange.
Centralized:
• The concentration of control of an activity or organization under a single authority.
Eg. Banks, Binance exchange.
The reason decentralization is better than centralization is that it gives the majority the power, not one individual or group, this allows for quicker, better, and fair decisions to be made within a company or group.
Problems decentralisations face are: Limited resources, lack of accountability and very limited information ability for people in the organization, these things can lead to a lack of efficiency in implementing new structures are operations.
Centralized entities are run like dictatorships in that whatever one person or a small group decides will happen. This very fact can lead to corruption at high levels which may involve putting the people with less power at risk for their benefit.
However, centralized entities have the advantage of having a uniform implementation of an idea, meaning at every level of the organization an idea will be put into effect very easily and quickly, good or bad.
