Centralized vs Decentralized Network System



Both Centralization and Decentralization have their own benefits and drawbacks in a network system and they are listed below:

Centralized Systems

Decentralized Systems

In centralized system, a central authority, with lots of computational resources connects all participants in the network which allows information to disseminate quickly.

The network contains furthest participants on many edges so propagating an information is slower compared to centralized system.

Centralized system is easier to implement as it requires fewer computational resources with higher throughput and has higher performance

Comparatively, decentralized system is complex to implement as it requires more computational resources with lower throughput and has lower performance.

Since central authority in centralized system is the main source, resolution is much easier in case of conflicting data.

As decentralized system contains many peers in the network without the central authority, resolving conflicting data is harder.

In case of failure in the central authority, the whole network can be taken down at once or Single point of failure.

No single point of failure: malicious actors cannot take down the entire network even if they attack large portion of participants.

Since central authority has the power to compel network participants to adopt upgrades, and update protocols, the coordination of participants is much easier.

The high chance of fracturing arises if network participants disagree about protocol changes and upgrades. So coordination is comparatively hard.

Central authority can censor and manipulate data and information propagated in the network.

Data manipulation and censorship is much harder as data and information can be disseminated in many ways throughout the network.

Central authority works as a gatekeeper and can deny the participation in the network.

Decentralized system lacks gatekeepers so, anyone can participate in the network.