Differences Between Centralization And Decentralization

What is the difference between centralization and decentralization?

It is impossible to overstate the importance of centralization and decentralization as a pyramid model since they are fundamental to any organization. What is the difference between centralization and decentralization as hierarchical structures, then?

The location of dynamic power and the amount of dynamic power at lower levels determine whether an association is integrated or decentralized. There is a constant debate between these two terminologies to show which is superior. This article tries to answer the question, what is the difference between centralization and decentralization

In an attempt to answer the question, what is the difference between centralization and decentralization, let’s look at Web 2.0 (the web we currently use), the forerunner of Web3. It is a centralized system compared to Web3 which promises to be decentralized. Web3 will offer decentralized access to linked data just like Freename in contrast to Web 2.0, which predominantly maintains data in centralized places.

Today, we use a version of the internet known as Web2. It involves the idea of a centralized system where all end users may contribute their material or information online on platforms like social networking sites, but the information will ultimately be taken over by the online platforms. The mechanism of this system simply does not let users truly control the material they publish or the data they communicate with the platform, signifying users’ dependency on them and their services. Platform controls and keeps an eye on actions.

Blockchain Advantages

By using blockchain technology to decentralize the system, Web3 seeks to abolish this dependence. We may examine and access the data at any time since it functions as a digital distributed ledger and contains information shared with any users from anywhere in the world. A record, namely a transaction, becomes immutable after it has been put on a block. This gives people full ownership of their digital assets because no one entity or authority will be able to possess, change, or erase any user’s data or shut down the entire network.

New economic and social models are made possible by the technology used by Web3, which is built on decentralized blockchains. By holding the protocol’s tokens or cryptocurrencies, users may participate as “shareholders” and control their data, identities, products, and algorithms. With that control, centralized Web 2.0 “intermediaries” like large IT firms and governments lose control and resources.

The usage of the internet between Web2 and Web3 versions alters and diverges as a result of this fundamental distinction.

Transfer of Assets 

To allow the movement of money, assets, or just transactions, Web2 needs middlemen like banks. They then rob users during transactions or transfers of their money or private details. The Web3 principles, on the other hand, do away with the requirement that exchanges of digital assets or other transactions made on blockchain go via any banks or money transfer providers, providing consumers with more transparency throughout the exchange process. The financial services won’t monetize these acts or add extra fees to them for their profit.


Decentralization indicates that there is no centralized authority to regulate the information flow in addition to the transfer of assets. No activity that violates the law can be restricted or censored by third parties. In Web2, though, every social media platform has the right to delete comments that it finds disrespectful or damaging to the community. Sometimes a website’s restrictions might be extremely tight, severely limiting the space for freedom of speech. Users may share their material on Web3 in an environment that is unfiltered and free from censorship.

Top-Down and Bottom-Up Structures

In terms of how the system functions, Web2 has a top-down organization. The board of directors or senior management team of most technology businesses or organizations sets the overall objectives before delegating duties to lower-level staff teams for distribution and implementation. The developers that create their programs or software often have complete control over the services offered on the internet throughout the Web2 platform. They will be the only ones making decisions on technical and organizational changes to the software and the networks as it develops into an entity that runs as a commercial organization. Although some staff may be given a certain amount of power to implement modifications to the system, end users are not permitted to take any part in these kinds of activities since they are not permitted to influence the decisions made.

Web3 follows a bottom-up strategy for the structure of the governing body that governs the system, which is the complete antithesis of Web2, in order to adhere to the decentralization of the internet. Web3 is open source, spawning an internet full of publicly owned programs and platforms, creating a decentralized network infrastructure; end-users can implement alterations to the codes and participate in making significant choices on their own without the need for consent. In contrast to Web2, which offers a version of the internet that only allows the development teams or top-level management to tweak the codes of the app or the software, Web3 itself would be an open-source software.


Decentralized autonomous organizations (DAOs) came into being and began to function inside the framework in this way. They are the companies that make use of blockchain technology to keep it running, whether it is by developing new apps or acting as a source of funding for other NFT or blockchain initiatives. DAOs are run by their individual members, who may then vote on ideas and make significant decisions together. They can only forward the change by coming to a consensus. The power is distributed across the users, producing a framework that distributes power from a select few to a large number of people.

Centralization vs Decentralization in Essence:

Answering what is the difference between Centralization and Decentralization

  • The notions of centralization and decentralization are crucial for the transfer of authority and power within an organization.
  • A top-to-bottom organizational structure, also known as a highly centralized structure, is one in which most of those at the top control decision-making.
  • A decentralization follows a bottom-to-top approach and permits the devolution of authority at lower levels.
  • With ever-larger organizations emerging in today’s environment, decentralized structures are viewed as essential. 


Factors determining decentralization:

  1. Significance of decision: The importance of the decision is crucial in determining the degree of decentralization. These decisions are taken centrally to avoid destroying the foundation of the firm or corporation.
  2. Enterprise Size: In big enterprises, this helps to avoid delays by dictating the degree of decentralization, the number of departments and levels, and the number of levels.

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Once you have completed your order, you will automatically receive on www.freename.io platform, in your personal area “portfolio” the randomly assigned NFT Domain value $50 or if you’re lucky a randomly assigned TLD with value $699 (between these: .immersive; .multiverse; .freelancer; .cashback; .hologram)

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Why do i Need a Wallet?

Freename domains are blockchain-based assets and would be minted and stored using a wallet. Users are required to mint and manage their domains using a Metamask or Coinbase-configured wallet. It must be a non-custodial wallet, meaning that one must own the private keys to the wallet in order to approve transactions via a signature.

To benefit from Freename Web 3 domains/TLDs, you must have a wallet. This is because Web 3 domains/TLDs are blockchain-based assets. Users can mint and manage their domains using Metamask or Coinbase-configured wallets.

Keep in mind that it must be a non-custodial wallet. You own the private keys to the wallet (in order to approve transactions via a signature).

Are the Domains Associated with ICANN?

ICANN does not manage freename.io domains. Freename.io believes their TLDs/domains must allow customers to operate independently. Freename.io wants to build a utility infrastructure, allowing customers to use their services for valuable and generative purposes. By leveraging blockchain technology, Freename Web 3 domains/TLDs have no centralized authority imposing rules and regulations.

What is a Wallet?

Every blockchain user requires a wallet in order to interact with the network. A wallet is essentially an account on the blockchain where transactions can be sent and received. It is also where one can store blockchain assets such as cryptocurrency or NFTs (non-fungible tokens). There is no personal information associated with a wallet and none is required to create one. A wallet consists of a public key and a private key. The public key can be safely shared with anyone who wishes to send assets to the corresponding wallet, however, the private key should not be shared and is the key to accessing the wallet in the event where access is lost or to create another instance.

A crypto wallet (cryptocurrency wallet) is software or hardware that enables users to store and use cryptocurrency. With cryptocurrencies, there isn’t any actual money to carry around in a wallet. They exist on the blockchain. Similarly to traditional bank transfers, crypto wallets enable users to send and receive cryptocurrencies, NFTs, etc.

A wallet consists of a public key and a private key. To receive assets, you share your public key associated with your wallet. You should NEVER share your private key.

How do i Claim my Earnings from Freename

ou can withdraw revenues generated passively through a cryptocurrency transfer. Connect your cryptocurrency wallet and, once your withdrawal request is confirmed, the desired amount is pulled from Freename’s reserves and conveniently delivered to you!

Claim your earnings by following these steps:

  1. Connect your cryptocurrency wallet to Freename.io
  2. Request a withdrawal
  3. Receive request confirmation
  4. Receive withdrawal directly to your wallet.

Can i Transfer Domains?

Yes. The domain is stored in your cryptocurrency wallet and can be transferred by you after you have minted it. Access your portfolio, select the TLD or Domain you wish to transfer and type the recipient’s address. Afterwards, you must paste the OTP code you received by mail to confirm the transaction. Keep in mind that currently, it is not possible to import the domain that has been transferred, but it will be possible soon!

Yes. Domains are transferable ONLY after a TLD/domain has been minted and stored in a user’s wallet.

To transfer the TLD (or domain), the user must:

  • Access their wallet
  • Select the item they want to transfer
  • Enter the recipient’s address.
  • Confirm the transaction by pasting the OTP received by email

In the future, Freename.io will support importing domains that have been transferred.

What about Trademarks?

Registering a trademark on your Freename Web3 TLD will allow you to protect your web3 TLD and your logo worldwide juridically.

From the moment you deposit a trademark request, your web3 TLD will be protected worldwide for 6 months awaiting for the Swiss Federal Institute of Intellectual Property (IGE.ch) to confirm and register the availability of your TLD.****

A trademark is any symbol, phrase, or word that allows customers to identify a company’s goods or services. Freename is a web3 domain/TLD provider that also provides trademark registration.

A user must reach out to the trademark department to register a trademark. To get your trademark filed for review at the Swiss Federal Institute of Intellectual Property, a user must provide the following:

  1. Complete a Know your customer (KYC)
  2. A list of TLDs they wish to trademark
  3. Proof of payment

Once these conditions are met, it takes one week for the trademark to be reviewed and logo/TLDs to be provided with six months of worldwide protection.

Is Minting the same as Buying?

Purchasing a TLD (or domain) on Freename and minting it on the blockchain are two distinct steps. When you purchase a TLD (or domain), the transaction is recorded in Freename’s database and not on the blockchain. Minting a TLD (or domain) on the blockchain requires a second step: log into the user’s personal area, select the TLD (or domain) and press “mint TLD” (or domain): done! Don’t worry, once you have purchased a Freename domain, no one can take it away from you!

No. Buying and Minting a TLD/domain are two different things.**

Buying **is the process of recording a transaction on Freename’s database and not on the blockchain.

Minting is the process of pushing a user’s domain from Freename.io data onto the public ledger of a blockchain and into a user’s wallet. Giving the user full control over the TLD/domain.

It is very easy to mint a domain/TLD once you purchase it. Simply:

  • Log into your personal area
  • Select the TLD (or domain)
  • Press “mint TLD” (or domain)

What is Domain Minting?

Minting is the process of publishing a Freename domain (or TLD) on the blockchain via your wallet to gain full custody of the domain. This means that the only person that has control over the domain (or TLD) is the person who controls (has access to) the wallet.

Minting is the process of pushing a user’s domain from Freename.io data onto the public ledger of a blockchain and into a user’s wallet. Giving the user full ownership over the domain.

Minting on Freename.io is as simple as the following steps:

  1. Go to the Freename.io website
  2. Enter the TLD/domain you want to buy in the search bar
  3. Add the TLD/domain to your cart
  4. Go to checkout
  5. Create a Freename.io account
  6. Purchase the TLD/domain with cryptocurrency or a credit card
  7. Go to “portfolio and incomes.”
  8. Click on mint TLD/domain

Which domains are Protected?

Protected domains and TLDs are domains and TLDs that we’ve detected are associated with a brand, organization, or notable person. We believe it is important to increase adoption for the next generation of the internet by helping to onboard brands into the Web3 era. If you are interested in applying for a Protected domain, please contact us.

TLDs/Domains associated with a notable person, brand or organization are considered Protected Domains. Protected domains help onboard brands in Web 3 increasing adoption. Protected domains also protect users from others impersonating/stealing their domains.

Reach out to Freename.io to apply for a protected domain.

Why use Freename?

Freename domains are unique by their very nature: only with Freename you can register domains with unique TLDs for your digital identity while passively earning money!

Freename.io is not only the leading TLD and Domains platform in Web 3, but also lets users generate passive income!

Owning a Freename Web 3 TLD entitles users to receive passive income whenever a domain is bought on their TLD. Users can register and mint TLD/domains of their choice if available.

What is a Domain?

A domain name is a string of letters and/or numbers that points to the IP address of the corresponding website. Generally, it is easier to remember a name than a long string of numbers.

A domain name is an address that people type into a browser bar to find a website. It consists of a Top-Level Domain (TLD), everything that comes after the dot, and the Second-Level Domain (SLD), everything that comes before the dot.

For example, “Freename.io” is the domain name, “Freename” is the SLD and “io” is the TLD.

Which Chains are Supported?

Freename has a multi-chain approach. You can choose on which Blockchain to mint your Web3 Domains and TLDs ranging Among Polygon, Cronos, and Binance.

A user can mint a Freename.io domain/TLD on the following blockchains:

  • Polygon
  • Cronos
  • Binance

Freename plans to expand its multi-chain approach by adding blockchains upon which domains can be minted.

Are there Renewal Fees?

No! Once you’ve bought a Freename Domain or TLD, it’s yours forever, no renewal fees ever!

No. There are no renewal fees on Freename.io. Once a user has paid a one-time payment for a domain/TLD, they own it. Forever.

This is the significant advantage of Web 3 domain/TLD over traditional alternatives.

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