Many keywords around the crypto-currencies capture conversations and headlines around the world, especially the terms "centralized" and "decentralized." These two words are the knife that cuts the cake from the crypts into two halves.
On the one hand, you have centralized entities, those that are in compliance with regulatory agencies and work closely with the existing financial architecture and the world's rules to promote the existence of your crypto.
The other half of the pie belongs to the decentralized entities of the world, which, as you can imagine, are not subject to the rules of the centralized banking world. These types of tokens offer a more diverse landscape in which they can operate.
The battle between centralized and decentralized ideas has been going on for a long time, and many are already familiar with the differences between them. In fact, most people already use centralized and decentralized concepts at some point, or at least heard of them.
Take for example the previous distribution of music and video, these two things were only available classically by retailers, physical stores where a person would buy a new disc or rent / watch a new movie. The chosen media was printed and placed in the hands of customers by physically existing companies to offer the service.
Years later, we saw the format of audio and video change to a digital format, denying the need for physical buildings to offer people their services. More and more people have moved to established online businesses to power their need for new audio and video entertainment.
At the same time, numerous decentralized options have emerged in the form of digital peer-to-peer file sharing.
We are currently seeing the same phenomena when it comes to money and its own evolution within the digital age. Traditionally, money is controlled, created and distributed by a few. Government agencies establish their own currency and control the flow of that money as long as that money has a country associated with it. For existing economies, this seems to work well, that is, until the existing economy changes.
As the digital economy becomes an increasing reality, the nature of money, the driving force behind any economy, is changing. This brings the decentralized world of crypto coins into play, changing the way money exists. In a decentralized world, money is no longer created or controlled by government agencies, but it is created and controlled by people. Living out of regulation allows a free flow of ideas and ways in which this alternative money is used.
As we now see, certain industries provide a natural or more suitable system for cryptomedean to reside, since it makes more sense for cryptomidea to be used for purchase, say an online membership for a service, rather than using it to buy a house or a car.
Although the future is a complete stranger on how many crypto-coins will be used daily, there is no doubt that the decentralized aspect of money is here to remain in the form of cryptomede.
Although centralized cryptomoeda offers an easier transition for those accustomed to current centralized financial methods, as they provide more confidence for investors, decentralized cryptomoedas are in a world of their own.
So how does one decide which side to play? Is it advisable to go with existing centralized products and platforms, or is it better to use decentralized platforms? The answer will be different for everyone, and individuals will likely use a combination of both.
In the past, when centralized and decentralized industries were in conflict with one another, a centralized, low-cost option usually captures a large part of the market. If we continue with media sharing, Netflix, as an example, offers a high-quality, low-cost alternative to centralized and decentralized methods of visual entertainment sharing. This eventually led Netflix to become a colossal player in the industry. Does this mean people still do not download or stream content on other platforms? No, but it illustrates how the evolution of both conflicting sides of the same market ends up finding a place to settle.
With the criptomoedas we see this already happening, as the market was new, was received with fear and distrust. Shortly thereafter, the market began to grow exponentially to the point where the vast majority of low-quality decentralized projects were considered fraudulent. This has given way to more centralized projects to put foot in the door as a safer way of venturing into the world of cryptography.
At the same time, the decentralized market that remained became more developed, the best projects rose to the top and gained significant market value.
Now we see a frenzy of centralized and decentralized projects, both offering attractive aspects to their clients for different reasons.
Source: https://coinsutra.com/decentralized-exchange-cryptocurrency/