Difference between Centralized and Decentralized
A central location or supervisor that is in control of planning, making decisions, and taking action are referred to as centralization. Top leadership has extensive privileges and authority over this organization. The centralization strategy was frequently used in the past to keep all of its power in one location. As a result, top management had total control over what middle and lower-level management did. Apart from that, it is clear that each staff member can lead and coordinate their own job, and staff dispersed work is simple.
As its name suggests, centralized cryptocurrency exchanges act as a go-between for buyers and sellers. Virtually all cryptocurrency transactions take place on centralized exchanges, which offer more reliability.
Example of Centralized cryptocurrency exchanges :
Decentralization is the process through which an organization’s tasks are distributed or delegated away from a central, in-charge location or group, particularly those related to planning and decision-making.
Decentralized exchange, in contrast to a centralized exchange, is non-centralized and involves several parties managing the assets. Smart contracts and decentralized apps are used to automate transactions and trades as opposed to conventional centralized exchanges.
This approach is much safer since, as long as the smart contract is made properly, there can be no security breach. By conducting its crucial operations on the blockchain, decentralized cryptocurrency exchanges differ from centralized cryptocurrency exchanges in that they let users maintain ownership over their assets.
Examples of decentralized cryptocurrency exchanges are