Centralized vs Decentralized vs Distributed

Saurabh Goyal
Jul 1, 2015 · 2 min read

For the last couple of months, a lot of my discussions have brought me to a single question of whether we want to go for a centralized system, a decentralized one or a distributed one?

Let me show you how these three look like.

We have had long discussions on the pros and cons and even though the debate is never ending, I want to highlight some points where these three majorly differ.

  1. Points of Failure / Maintenance : Centralized systems are easy to maintain as there is only a single point of failure. Decentralized have more but still finite. Distributed systems are the most difficult to maintain.
  2. Fault Tolerance / Stability : Centralized can be highly unstable. Kill the leader and there will be chaos. Kill the leader for a decentralized system and you will have many decentralized systems. Distributed systems are very stable and a single failure doesn’t do much harm.
  3. Scalability / Max Population : Centralized — low scalability, Decentralized — Moderate, Distributed — Infinite.
  4. Ease of development / Creation : Centralized systems can be created really fast, you pick up a framework and apply it everywhere. For Decentralized and Distributed, you have to first work out the lower level details like resource sharing (trade) and communications (transport).
  5. Evolution / Diversity : Since centralized systems follow a single framework, they don’t have diversity and evolve slowly. But for Decentralized and Distributed systems, once the basic infrastructure is in place, evolution is tremendous.

Some Suggestions

  1. If you want to grow fast and scale is not a concern, go for centralized.
  2. If you are solving a problem of scale and not in hurry, choose distributed. If in hurry, choose decentralized.
  3. If you have a strong leader, choose centralized. But if you have good managers, then choose decentralized and if you have a lot of individual contributors, then choose distributed.

If you agree to this, then please recommend & share.

If you disagree, please leave comments.

Delta Exchange

#TradersFirst Cryptocurrency Derivatives Exchange.

Thanks to Jayesh Sidhwani

Saurabh Goyal

Written by

CTO — Delta Exchange

Delta Exchange

#TradersFirst Cryptocurrency Derivatives Exchange. Delta is the most reliable place to trade Futures on Bitcoin, Ether, Ripple and other altcoins. We offer 20x leverage, fast execution, 24/7/365 liquidity, low fees and enterprise-grade security.

Saurabh Goyal

Written by

CTO — Delta Exchange

Delta Exchange

#TradersFirst Cryptocurrency Derivatives Exchange. Delta is the most reliable place to trade Futures on Bitcoin, Ether, Ripple and other altcoins. We offer 20x leverage, fast execution, 24/7/365 liquidity, low fees and enterprise-grade security.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store