Steemit Crypto Academy S5-[Blockchain, Decentralization, Block explorer] - Task 04
(2) Define decentralization. Describe the advantages and disadvantages of a decentralized system. In what areas of life can a decentralized blockchain be helpful? (write in own words)
Define decentralization
- Basic Introduction for decentralization
Nowadays it is very common to hear all these concepts, and many times we try to enter the world of blockchain if we even take the time to know what it consists of or how they work, which often leads us to make irreparable mistakes such as the loss of money.
To know that today decentralized blockchain technology is an excellent tool to improve the efficiency of the processes that are developed in companies, at a political or economic level is to understand that this option is not only forming part of current businesses but we will also see it in those of the future. That is why it is important to know what they are, how they work, and what applicability we can give them in everyday life.
- What is decentralization
In order to give the definition of decentralization, it is necessary to know the concept of centralization which is nothing more than a system in which an entity has the power and control of all political or social-economic resources.
While decentralization is a system in which third parties do not intervene and each participating author is responsible for managing their resources. In this sense, the decentralized system is not governed by any central body which has absolute power but is autonomous and decisions are taken by itself or by each of the members of that system since everyone has the right and ability to be a participant in the operation of that system.
source
| Centralization | Decentralization |
|---|---|
| The authority resides in a central unit or person. | All people have control and authority |
| Decision-making processes depend on approval | Immediate decisions can be made. |
| Information flows from the highest hierarchical level down | The information comes from all the actors involved. |
- Main features of Decentralization
👉 Trustless environment
👉 data reconciliation is improved
👉 Resource distribution is Optimized
👉 Security environment is high
👉 Data is unchangeable or deletable
👉 Faster Transaction speed
👉 No need to depend on someone
Describe the advantages and disadvantages of a decentralized system.
- Advantages of a decentralized system.
👉 The biggest advantage of a decentralized system is autonomy.
👉 They allow a greater and better management of resources, since by not participating a central unit each member of the system can maintain a constant monitoring.
👉 It provides the freedom not to rely on a central point of control to build trust.
👉 Information or data entering a decentralized system may not be manipulated, modified, or disclosed.
👉 It allows for immediate decision-making because it does not wait for approval from a lead body.
👉 Less risk of problems in the sense that everyone is responsible for their business so that there are no intermediaries that can harm us.
👉 Each person who is part of that system can operate as and when they want.
👉 Immediate availability of resources and saving time and money.
- Disadvantages of a decentralized system.
👉 There may be losses of money if the processes are not well known or an operation is done badly.
👉 There can be multiple criteria around the same situation which makes it more difficult to make a good decision.
👉 There is no adequate control in relation to certain aspects due to the large volume of people who live in the system.
👉 There is no adequate control in relation to certain aspects due to the large volume of people who live in the system.
👉 Implementing this system although it is very effective is extremely expensive.
In what areas of life can a decentralized blockchain be helpful? (write in own words)
Blockchain technology has had very good receptivity at the present time, in this sense it can be said that little by little it will be part of the businesses of the future, for its security and high reliability. So applying it in several commercial sectors would be very useful in the optimization of processes.
- In identification systems
it would be very important to apply blockchain technology to these systems so that there can be worldwide control over the identification of each person who lives on earth. If we take into account that the data entered in a blockchain cannot be modified, making use of this tool will allow us to have basic control of people. This would be like a digital card.
- Healthcare system
Storing a patient's medical history, and large-scale surgical procedures on a blockchain will undoubtedly allow timely responses to those who need it at any given time, no matter where they are.
- Security systems
For no one is a secret the corruption so great that is handled in the security entities, so much so that it does not matter how much a person can owe to the justice if it has enough power, it can pay police, judges, prosecutors or whoever to delete all the files and evidence against him. Saving a blockchain all the important information on global security will make it possible to regain trust in these bodies in one way or another.
- Legal Sector
the transparency provided by decentralized blockchains would allow for more secure processes since the documentation that is registered there cannot be altered.
Final Words of decentralization
As we could see, decentralized systems work better than centralized ones, they enjoy high-security standards, which generates a lot of trusts. Employing a decentralized blockchain in many of the important sectors of our country will help make processes transparent much more transparent, thus reducing corrupt and ill-intentioned acts.