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What are Centralized & Decentralized Networks

The primary aim of creating a centralized network is to enhance the efficiency of work and also take benefit of potential economies of scale.

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What are Centralized & Decentralized Networks

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  1. What are Centralized & Decentralized Networks Ever since we got to know about Blockchain technology, there has been a constant debate about the usefulness of decentralized technology and centralized technology. In this blog, we will be focusing on how centralized and decentralized technology is different. 

  2. What is centralized technology? Before we understand how decentralised technology is proving to be beneficial, we have to have a good review of centralized technologies and why they need to have decentralized technology. In the case of a centralized architecture, we have a single server controlling all the major processing. The less powerful stations submit the request to the central server rather than decide or act. Although, it is easier to manage the data and enhances its efficiency.  Despite all these advantages, the network administrators are under pressure in the case of a centralized system. They have to ensure that the main server is working efficiently. Although the centralized architecture offers better scalability and capability to store data, ensuring its safety is a big question. Lack of bandwidth is a drawback; as a business owner, if you have a business with a fluctuating period, then a single server can be a big hindrance. 

  3. What is the decentralized system? In the case of a decentralized network, the workload is distributed amongst different networks or machines. There is no dependency on a central server. Blockchain is an example of the same. It is a decentralized ledger technology that has different nodes. Some of the key features of a decentralized system: 1. Immutability 2. Transparency 3. Better scalability 4. Traceability 5. Data encryption

  4. How does a decentralized system be different from a centralized system? The primary aim of creating a centralized network is to enhance the efficiency of work and also take benefit of potential economies of scale. Whereas when we talk about the decentralized network, that improves the speed and enhances the network's flexibility. Basically, the decentralized network shifts the focus from the single central server to individuals. This makes the system keep on running seamlessly.  Decentralization has become one of the key contributors to change. The centralized system brings in the dependency on an intermediary, but when it comes to a decentralized system, then you have the authority distributed to the people in the network. With this, it becomes easier for anyone to track and trace the information. 

  5. The bottom line In the end, we want to conclude with the fact that decentralized technology is going to drive the future. Many companies are actively investing in this technology. From real estate to finance to healthcare, every sector is exploring how a decentralized system can be beneficial.  All these developments are opening up the scope of opportunities for Blockchain developersand Blockchain experts. If you are looking forward to making a good career growth, learning more about Blockchain will be the best move. The Blockchain Council offers an online certification program in Blockchain, and after successful completion, you will gain a competitive edge over the others. 

  6. Blockchain Council Certifications You can check out our certifications, and kick start your career in the Blockchain space today. • Certified Blockchain Expert • Certified Blockchain Developer • Certified Smart Contract Developer • Certified Solidity Developer • Certified Ethereum Developer

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