Sophia Casey

May 7, 2021

3 min read

What are the Differences Between Centralized and Decentralized Networks?

There has been a continuous discussion about the utility of decentralized and centralized technology since we first learned about Blockchain technology. In this blog, we’ll look at the differences between centralized and decentralized technology.

What is the concept of centralized technology?

Before we can comprehend how decentralized technology is proving to be advantageous, we must first examine centralized technologies and why they require decentralized technology.

In a centralised architecture, all of the main processing is controlled by a single server. Rather than deciding or acting, the less efficient stations send the request to the central server. It is, however, easier to manage the data, which improves its performance.

Despite these benefits, in the case of a centralised structure, network administrators are under pressure. They must ensure that the main server is up and running. While a centralised architecture provides greater scalability and storage capacity, maintaining data security is a major concern. A lack of bandwidth is a disadvantage; as a business owner, if you have a seasonal business, a single server may be a major hindrance.

As a result, a decentralised system is needed, which is where Blockchain comes into play.

What does it mean to have a decentralised system?

The workload is spread through many networks or computers in a decentralised network. There is no reliance on a single server. The blockchain is a good example of this. It is a distributed ledger technology with several nodes. The following are some of the main characteristics of a decentralised system:

1. Impermanence

2. Discretion

3. Increased scalability

4. Reliability

5. Encrypting data

What distinguishes a decentralised system from a centralised system?

The main goal of establishing a centralised network is to improve work performance while also taking advantage of possible economies of scale. When we speak about a decentralised network, though, it increases the network’s speed and flexibility. The decentralised network, in essence, moves the emphasis away from a single central server and toward individuals. As a result, the machine continues to operate smoothly.

Decentralization has emerged as one of the most important drivers of transformation. A centralised structure necessitates the use of an intermediary, while in a decentralised system, power is dispersed among the members of the network. This makes it easier for everyone to track down and trace details.

Last but not least

Finally, we’d like to state that decentralised technology would be the driving force of the future. Many businesses are making significant investments in this technology. Every industry, from real estate to banking to healthcare, is looking into how a decentralised system might be beneficial.

All of these advances are expanding the range of possibilities available to Blockchain developers and experts. If you want to advance your career, learning more about Blockchain is the best step you can make. The Blockchain Council provides an online Blockchain certification programme that will give you a competitive advantage over the competition if you complete it successfully.