Blockchain and Cryptocurrency Basic - Decentralized System vs Centralized System - Which is better for Business or Trading?

The centralized system is the better option when it comes to business in my opinion. This is because as a business owner, you can make decisions quickly and you hold the mantle to make the best decision for your business. Look at some of the most successful businesses in the blockchain space like Binance, they are all centralized and have achieved tremendous growth in a short time because they made clever, bold and best decisions for their business rather than waiting for the slow process in reaching consensus which can be a bad decision because since the decision making is based on majority, the majority can make bad decisions.

From the users' standpoint, I would say both decentralized system and centralized system have their pros and cons.

A decentralized system is better for trading in my opinion. This is because as a trader, you want full control of your trading activities and full control of your assets. Like we have seen in DeFi and DEX, it is permissionless, traders like to have full control of their assets and trading activities.

How do you know if a blockchain is decentralized or not?

Some persons usually confuse the word blockchain with decentralization. While this is correct most of the time, not all blockchain project is decentralized and the good news is that there are ways to know if a blockchain project is decentralized or not. To know if a blockchain project is decentralized or not, let’s use a popular project called uniswap.

• To check, visit https://etherscan.io
• On the search bar, input the uniswap contract address and search for the blockchain platform

• Next, you will see the details and information of the blockchain platform.
• At the bottom, look for contract and click on the contract tab

• Under the Contract Source Code (Solidity), you will look at whether there is any line that writes function destruct in the code. For uniswap, it is a fully decentralized exchange.

When it comes to making good decisions in the blockchain and cryptocurrency space especially when it comes to cryptocurrency investments or trading, it is very important to have a very good understanding and knowledge of decentralization and centralization as they both play a big role in the blockchain and cryptocurrency space. Having this knowledge helps to make better decisions. For example, it can help in deciding which exchange is better to trade like centralized exchanges or decentralized exchanges. Also, when it comes to investing in cryptocurrency and blockchain projects.