Hello, in this lesson I am going to cover the difference between a centralized system, a decentralized system and a distributed system. So what is the difference? First of all, a lot of people use the word centralized oopsy, Daisy distributed and they don't always use it correctly. So in the case of blockchain for example, so blockchain is a transaction system, essentially a fancy database and amazing database. People call it distribute, I mean, decentralized, they call it distributed, and it's not one of them is actually both of them. It is a decentralized district.

System you can have a system that is decentralized and distributed. What it isn't, is a centralized system. There are elements of centralization in blockchain and various other decentralized distributed networks. A lot of the time, they're not there by design, they are there as an addition to essentially accommodate the current state of the economy or technology, or something I will cover in a separate video in this one just going to cover what a centralized, decentralized and distributed system is. So first of all, let's go through centralized. So a centralized system essentially has a single authority.

This could be an individual, it could be a government, it could be a company, so essentially an organization that controls the transaction of processing Everything. So in the case of blockchain, or I should say, let's say, the internet, for example, if it was centralized, there would be one authority that controls everything. All these branches you can think of as nodes, let's say users, for example, that could be servers. So so in this case, they are centralized. So your IP, your internet provider is a great example of this. They are essentially the centralized system, your internet provider.

And if they were to choose to take their servers offline, or take you offline for whatever reason, maybe you broken the terms and conditions, then you will lose access, you could obviously go to another IP. But again, they will be centralized. So that's the thank you our centralized system is. So let's just talk about the advantages and disadvantages. The obvious disadvantage is if a centralized system were to go offline, so maybe it's a company and it were to go financially broke, they couldn't manage to pay for their servers. And as a result, they stopped.

There have been companies in the past because if you just look over the past a year or two, and if you look, over the past 1020 years, there have been companies that have not been able to sustain themselves and as a result ad for shut down network systems or data We've essentially shut themselves down. And the users have been left in the dark, because they haven't been able to communicate with the central system, which allows them to communicate with the other users. The advantage is because there is a central organization, they can set one set of rules. Again, you can argue that good or bad, but let's say the rules are fair. That's good. Because if there's a bunch of different people, and they're all setting the wrong rules, there's not much consistency.

So there are advantages to centralization on you shouldn't look at it as Okay, decentralized distributed is the key for everything. But there is definitely merit to all of the different systems that centralized let's have a look at a A de centralized system. So a D centralized system is financially like there. So let's just draw some nodes off of this. We have these nodes. So again have to think of them as computers and store a few more, few more Fimo And they are connected to these main nodes are connected to gether.

So this is a decentralized system. So the benefit of this is if one node were to go down, the overall system could still function, this super node, I'm just calling super node could essentially Connect. Let me undo that, that didn't look very good, could connect to this other network and theoretically, the could connect to this main system. So that's a D centralized system. So Vantage is of that no one single authority has control over it, which is fantastic. And it allows some would argue and I would agree a true form of democracy in the system.

So that's the centralized for about distributed and distributed network end up looking similar to a lattice style structure and draw any more you'll be able to get the picture from what I'm doing here and they are connected like so. So this is essentially a distributed system. So in a distributed network, not one single place is right During the wrong place, not one single place is processing the data. This is also similar to p2p, which is peer to peer, which is very similar to what stops Why? Because our online wire used to work on and many other platforms still do. And what this allows is, if one node were to go down, so imagine this is a peer to peer network where you're sharing legitimate files, of course, then all of the other users either have the files or they are part of the file.

And if this user over here, wants a particular file, they can get chunks, maybe from their few there, they could get chunk from this user, they could get chunks from this user. They could even get chunks from this user. And that's essentially a distributed network. So Those are the main differences between a centralized network a de centralized network and a distributed network and networks can be more than one of them. So, in the case of blockchain, they are both the centralized and this grid view tid and what that essentially means is no single authority controls it and no single play pro processes the In meishan, and this is a true form of a demo cratic. Network.

Because if you have essentially one single authority, controlling the web is data wherever its people, then that is not a democratic system. And, well, yeah, it's not a democratic system. Whereas with a distributed decentralized is a democratic system, which allows information to be processed very quickly, very well because it's not dependent on one single node, which is good. You can use multiple nodes with varying processing powers. And if one node were to go down, you can just use a note for note also So for example, imagine if these nodes if this node was the main one here, if this were to go down, then like said you could get data from other nodes. But in a centralized system, obviously, not only can you not get it, but let's have a look in a decentralized system.

With a decentralized system. The data could essentially be further away. I know we're talking about fractions of a second, but if you're sending data, a lot of it, then that can actually make a huge difference. So that's can be benefits of a distributed system as well in a decentralized system. So I hope that has given you some insight into a centralized system, a decentralized system and a distributed system. As usual, your questions feel free to reach out and find fortune