Centralized vs decentralized: use cases
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Centralized vs decentralized: use cases

Payment system

The obvious starting point would be to talk about the global payment system, as this was the original idea behind the world’s first decentralized cryptocurrency: Bitcoin. Uniswap clone All banks in the world operate on centralized servers. This means that they have access to all your financial activities.

They know how much you get paid, where you spend your money, who you send your money to, and everything else related to your bank account. Also, if someone could get their hands on your Internet banking password, or worse yet, hack into the bank’s centralized servers, they would have access to all of this information. If the centralized servers failed (which happens all the time), you could be denied access to your funds.

When we compare centralized vs decentralized, a decentralized payment system solves all these problems. When you use cryptocurrency to send or receive payments, you don’t need to rely on a third party to confirm the transaction.

Since no third party is required, the fees are substantially lower, and in some cases virtually free. This makes cryptocurrencies perfect when sending or receiving a payment from someone in a different country, as companies like Western Union charge high amounts.

Decentralized systems are borderless, so it doesn’t matter if you’re sending money to someone in your hometown or someone on the other side of the world.

Your funds are also much safer when you use a decentralized system. The only person who has access to your money is you because you are the only one who has the private keys to access your funds. Uniswap clone script If you follow the correct security measures, no one will be able to find out what these private keys are.

In general, a global payment system that is decentralized has the following advantages.


✓ No third party can access your information

✓ Fast transactions worldwide

✓ Economic transactions worldwide

✓ Transparent: everyone can see the transactions that have been made on the network

✓ Insurance

✓ No central point of failure

government vote

Government Voting: Centralized vs. Decentralized

For the next example in this centralized vs decentralized guide, I’m going to discuss government voting. In most countries, governments are elected by their citizens in regular elections. This process must be simple, everyone must have an equal vote, and it must be carried out in a fair and transparent process.

However, even in the Western world, this is not always the case.

In the most recent US election in late 2016, Donald Trump of the Republican Party won, making him the new president. During the elections, all citizens over the age of 18 had the opportunity to vote for the president they wanted, which of course is the fairest way to vote.

However, there were many media reports and conspiracies shortly after which claimed that the vote had been rigged. There was even a full investigation into whether the Russian government rigged the process in any way. However, because the voting data is not accessible to the public, there is no way for people to know if this is true or not.

Not only this, but there have also been occasions where governments have fraudulently won an election by manipulating votes.

One such solution to these threats is to vote for a decentralized system. This system is transparent and would allow all voters to see where each vote came from and the legitimacy of each vote. It would guarantee that people only get one vote, and there could be no way to rig the decentralized government voting system.

There is a cryptocurrency called VoteCoin, which has created a cryptocurrency that will allow people to vote on a secure and anonymous platform, ensuring that the result is fair and transparent. Uniswap clone software I wonder how long it will be until the first decentralized government vote takes place on an app like this.

In short, these are the advantages of a decentralized voting system.

✓ No possibility of electoral fraud or manipulation due to the transparency of the network

✓ No chance of threats from government forces due to anonymity

So now that you know about a possible decentralized government constituency, the next part of my Centralized vs Decentralized guide is going to look at energy.


Electricity is a human right that all citizens should have. Whether it’s to light your home, power your kitchen, and simply heat your water, we all need electricity.

However, the current centralized system is anything but fair.

The standard process works like this: a centralized private organization acts as an intermediary between the citizen and the national network. The national grid is the infrastructure that connects people’s homes to the electricity supply.

Yet these centralized third parties choose how much they charge people, meaning they make huge profits on something that should be classified as a basic human right. I’m not saying that electricity should be free, but there is no need for a centralized third party to charge us ridiculous prices.

One solution that is currently being built is by a decentralized organization called PowerLedger.

By using blockchain technology, they have developed a system that cuts out the middleman. Is that how it works:

  1. John has solar panels on his house and he uses the electricity he needs.
  2. John has extra electricity left over, which he plans to sell.
  3. Normally you would have to sell it back to the power company, however with the help of PowerLedger you can sell it to someone else directly at a fair market price.
  4. Your readings are posted on the public blockchain, and anyone in the local area can buy the extra electricity from you.
  5. John not only gets a better price, but also the buyer.
  6. All of this can be done without the help of a centralized third party.

As you can see from the example above, by eliminating the third party, both the buyer and the seller get a better deal for their electricity. Nobody can cheat the system because everything is available to see on the blockchain. To make things even more secure, decentralized exchange script the buyer and seller can trade using a cryptocurrency, allowing for a nearly instant and free transaction.