You have heard about decentralization a lot in Web 3.0 topic. Let's understand centralization and decentralization in deep 👇
Decentralization is a core tenet of Web 3.0
Centralization is a form of organizational structure where the decision making capability rests with the top management
- Higher performance and easier to implement
- Single point of failure: malicious actors may be able to take down the network by targeting the central authority.
- Participation in the network is controlled by the central authority.
Decentralization is another form of organizational structure that functions by delegating decision-making capabilities to multiple teams across geographies.
- Lower performance and more complex to implement
- No single point of failure: network can still function even if a large proportion of participants are attacked/taken out.
- Anyone can participate in the network; there are no “gatekeepers.” Ideally, the cost of participation is very low.