Centralized Systems / Decentralized Systems of Digital Network

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Avatar for Chaliemoscow12
2 years ago

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.

Thank you for reading!

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