Centralized Systems / Decentralized Systems of Digital Network
Centralized Systems
Low network diameter (all participants are connected to a central authority); information propagates swiftly because it is handled by a central authority with plenty of computational resources.
Typically, higher performance (higher throughput, less total computational resources consumed) and simplicity of implementation.
In the event of conflicting data, the solution is simple: the central authority is the final source of truth.
Single point of failure: By targeting the central authority, bad actors may be able to bring the network down.
Coordination among network participants is easier, and a central authority is in charge of it. With little friction, a central authority can compel network participants to adopt upgrades, protocol updates, and other changes.
Data can be censored by a central authority, thereby preventing parts of the network from connecting with the rest of the network.
The central authority has control over network participation.
Decentralized Systems
The network's farthest participants may be separated by a large number of edges. It may take a long time for information broadcast from one side of the network to reach the other.
Lower performance (lower throughput, more overall computational resources used) and more difficult to accomplish.
If peers make contradictory claims about the status of data that participants are supposed to be synchronized on, a procedure (typically complicated) is required for dispute resolution.
There is no single point of failure: the network can continue to function even if a huge number of participants are attacked or killed.
Because no single agent has the final say in network-level decisions, protocol changes, and so on, coordination is often challenging. In the worst-case scenario, where there are conflicts about protocol changes, the network is prone to fracture.
Censorship is significantly more difficult because information can spread in a variety of ways over the network.
There are no "gatekeepers" in the network; anyone can join. Participation should, in theory, be free.
Note that these are general patterns that may not hold in every network. Furthermore, in reality, the degree to which a network is centralized/decentralized lies on a spectrum; no network is entirely centralized or entirely decentralized.
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