Centralization simply means that power is given to some group of individuals to manage the affairs of a particular administration. For example, the bank is a centralized system because your asset is been managed by some group of employed individuals in the bank.
They take care of your deposit and withdrawals from the bank, all activities performed at the bank is been handled by the centralized system. This Group of individuals sometimes gets to use your asset to invest in other projects without your notice.
Decentralization on the other hand is a type of system that gives power to the user of the system. An example of the decentralized system is the hive blockchain, this is because the user of the blockchain determines what to post and when and where they would like to withdraw their asset without third-party involvement.
Unlike centralization, the decentralized system gives the user the power to choose what to invest their asset into.
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choose between the decentralized crypto way of saving assets and the centralized banking way, I will go for the decentralized system because.
Back in 2020, The government of Ghana shut down some of the private banking sectors in the country, and people who had their assets saved in the bank got worried.
They were given a period to go to some of the government banking sectors with proof of their ownership to have their assets withdrawn back to them. This incident caused a lot of panic in the country and people who had planned to use their assets for business had to wait till they are giving the go-ahead to have their assets withdrawn.
This is one of the setbacks of the centralized system.
Another major problem of the centralized system is that it's not prone to hackers, as your asset is kept in your bank wallet, hackers can easily get hold of and withdraw all your assets without the notice of you and the bank.
Having to choose, I would rather go for the decentralized system than the centralized system
One major advantage of decentralization is that it is difficult for hackers to get hold of your asset since it’s not stored on a single server.
In the decentralized system, all you need is good network connectivity and a crypto wallet and your asset will be saved and secure until you choose what you would like to use it for without the interference of any party.
Even though sometimes having to invest in a specific crypto coin is dangerous because you can end up losing it all due to the inflation of the market but it is also a good way of investing because there are other stable crypto coins like the USDI where one can have his assets converted into USDT which isn't affected by the bullish and bearish of the crypto market.
One disadvantage of decentralization is that you lose your assets once you misplace your keys to your wallet and it can never be retrieved. This is why is it always advisable to store your wallet keys in more than one secure location.
Decentralization is taking over the world and it is high time that we the individual let go of the old way of saving assets and look into the new world order.
its really depressing when you saw the bank were you save your money closes and you suddenly cannot access your money and this happen on any banks at anytime so I also prefer more the use of decentralized banks.
Saving money in the decentralized system is more safe and convenient
yeah..
Yay! 🤗
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