CryptoAcademy Season 3 Beginners' Course-Task 2: Blockchain, Decentralization, Block Explorer by @paakow

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

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Decentralization is a network system where users across worldwide have the freedom and sole power to decide on their own without the influence of anyone.

Every individual is empowered to control every activity regarding his/her business or work at any point in time on their own without following any strict rules. This prevent a state where only one person has the absolute power to setup rules for others to follow whether favourable or unfavourable. Also, trying to access someone's account turns to be impossible.

Contrariwise, centralization is the handling of all activities in an organization under a central body. Here, all powers are vested in a single body so every user is oblige to go by every decision made in the organization.

DESCRIBE THE ADVANTAGES AND DISADVANTAGES OF A DECENTRALIZED SYSTEM

Advantages

Some of the advantages are;

★ Power is being conveyed to the lower level:

Unlike in a centralized system, where the authority is vested in a single body, here, authority is being dispersed to divergent users which help them to make any decision on their own without any interference.

★ Responsibilities are distributed among users:

Since the system is not being operated by a central body, all the workloads are being shared by the users to make things more easier and control stress.

★ Security is high:

It makes hacking more difficult because the blockchain is highly encrypted which helps the users to escape from all sort of frauds.

★ No chance for cheating:

In the decentralized system, all users are ideally equal. Even if a new user is being introduced in the system, there are possibly, no chance for any other user to steal from him/her because every single activity done is being tracked by the system.

★ All transactions are more easier and safer:

Sending and/or receiving funds tend to be more easier and faster for users because the activity does not involve any third party for approval.

Disadvantages

Some of the disadvantages are;

★Transactions can not be reverse:

Since there is no central body to monitor all activities, once a transaction is being placed into a wrong user's account wallet it will be very difficult to retrieve.

★ Wrong decision:

In a decentralized system, we have the experience and inexperience, however, all users handle situations according to their own level of understanding. As a result, some may end up making a wrong decision which will definitely affect their account severely.

★Passwords cannot be retrieved when lost:

The system is too secured to the extent that when a user unintentionally lose or forget his/her password it becomes a great problem. The user's account can not be recovered without their passwords if they refused to store it at a safer place.

In what areas of life can a decentralized blockchain be helpful?

Some of the areas of life where by decentralized blockchain can be applied are explained below

★Election:

After every election in various countries, opposing parties tend to believe that they were cheated because not all information were being displayed. Adopting the decentralized system will make all activities transparent. This will also bring peace after every election.

★ Banking:

In order to control fraudulent activities and most often time wastage at the banking sector, I think, practicing the decentralized system will help alot.

★ Online marketing:

One of the most feared activity in trading is being hacked. Application of the decentralized blockchain will help buyers and sellers to safely and successfully deal with their businesses without being perturbed about anything.

★ Land Sector:

Decentralized blockchain can effectively be useful in this sector. It will allow all land sales to be secured and transparent. This will help to stop land dispute and corruption.

Special mentions,
@yousafharoonkhan
@wahyunahrul