Apr, 2021 - By CMI
The decentralized systems allow multiple parties in a company to participate in the decision-making process at the organizational level.
In the decentralized systems, there is no singular central server or authority which will make decisions on the behest of all the members. All the members in the decentralized organization are referred to as ‘peers’, who make independent decisions in their respective community. Each community in an organization makes the decision as per their goals to avoid disputes among the peers. The mutual interaction among the peers gives the platform to every individual to express their opinions and thoughts in the decision-making. The decentralized system is not bounded to entry or exit of any peers from the organization, as the decision-making remains intact. This makes every peer as the independent member with distinct goals. Due to absence of centralized methodology, the decentralized systems are prone to cyber-attacks on peer level.
In the p2p network, every workstation grants access to data and resources i.e. all the systems on the network are equal. This network allow the peers to communicate with each other through their systems and share attachments between them.
Every system on the p2p network has the authority to allow or deny access to other systems, as every individual system controls the accessibility of its resources and data. The p2p networks find their applications in small deployments and sometimes in places where security is not of much concern.
Suppose a peer has shared a folder, which contains bank transaction records on her/his system, this enables other peers to access all the files of that folder. As peers can control accessibility to files and information on their systems, the network management is not controlled by a single peer.
A decentralized system is an internally-connected data system in which a single unit does not have the total authority. On computing platforms, the decentralized systems are deployed in the form of networked-systems. This system has several management nodes (mobile devices, computers), as each node on the network system interacts with other nodes to act as a multiple unit. The decentralized systems shift the decision-making authority and the control from a central owner or server to a network of servers or owners.
On business level, various sectors encourage the implementation of a decentralized system to maintain the output of their operations.
Administrative expenditure rises for an organization when decentralized system is implemented. While recruiting an expertise personnel at the managerial level, each division demands the new professional member to be part of their team. This leads to the improper application of facilities and functionality of resources. Due to these reasons, decentralization is considered as a costly system. However, they are best-suited for large organizations.
In an organization related to information technology, the decentralized system has to be managed along with the centralized system while building the network system.
With the development of Blockchain technologies such as Bitcoin along with other cryptocurrency, the decentralized systems have been gaining global attention. The Blockchain technology is a decentralized system, which makes use of peer-to-peer network to implement the connectivity and safety of transactions without the need for any third-party such as banks. Although the ledger of Blockchain technology is equally distributed among all the cryptocurrency users, its systems are decentralized. This technology is used in Bitcoin in a decentralized manner so that the control of the system is not bounded to a single person or group. However, in centralized and private blockchains, the network of computer systems are owned and handled by a single system or node. Decentralized blockchains are permanent, i.e. the information once entered is unchangeable. The transactions are permanently recorded and accessible for everyone in Bitcoin. This cryptocurrency stores the information such as transactions, legal and real-estate contracts, and company’s confidential records.
To change the functionality of system or the data stored in it, the computing power of decentralized networks is used ensuring that changes are made as per the interest of the owner. All the blockchains of Bitcoin are decentralized in nature, due to which the transparency of transactions is achieved in this cryptocurrency.
Owing to its decentralized system, the blockchain technology does not store any data in a central server or location. Rather, the blockchain is shared and distributed across a network of systems. When a new block is introduced in the blockchain, every node or system on the network updates the blockchain in reflection of the change. With distribution of this data on the network, the interference in the system becomes extremely difficult. Hence, the information on the network is secured. Unlike in centralized systems, if a crypto-file is disclosed to a hacker, he will not be able to access the entire information of the network except that crypto-file.
However, this system is still a major improvement over the centralized system when considering the total network performance.