Steemit Crypto Academy Contest / S1W3 – Blockchain through the concepts by @xkool24
Hi friends, hope we are doing just fine? This is my second entry in the Steemit Engagement Challenge since its emergence as well as for this third week. I will be handling a contest as presented by Steemit Crypto Academy on "Blockchain through the Concepts" in which I will make some detailed remarks on Decentralization
Image edited in Canva
Overview and Concept of Blockchain Decentralization
In availing one of the concepts of Blockchain, Decentralization has played an all-important role in the daily and overall existence of Blockchain sustenance. Decentralization in Blockchain brings about an absolute transfer of control to every participant in the system. This is a concept that brings about trust in its creation due to the concerns inherent in the centralized platforms. Therefore, this means that all participants are observed to have unlimited access to the ecosystem with no one exerting control over another.
Though the term Decentralization isn't a new concept it is a major player in the Blockchain ecosystem. It is a concept that cut across the entire aspect of the Blockchain buildup. In this case, the management of resource access can be achieved given the protocol of Decentralization.
Despite it much talk about the new normal in use, there are still some pockets of tradeoffs inherent in this concept. This comes with a relatively low transaction throughput inherent in the Blockchain concept where it cannot accommodate the three legs which are observed as the buildup of the Blockchain Concept, namely; Decentralization, Security, and Speed. No wonder the emergence of the Blockchain Trilemma has been a source of concern due to two majors and one minor in its build-up.
The Importance of Blockchain Decentralization
One important thing we must know about a decentralized Blockchain protocol is that it is a Trustless system with the ability to distribute the same data to all participants in the ecosystem. This is the large picture that guarantees the safety of all members at any given time.
Other importance of Blockchain Decentralization include:
1. Improvement of Data Reconciliation
This plays a key role, especially in companies that deal in data exchange. Due to the volumes of data exchanged and its distribution downstream, there are possible causes of loss of data and hence Decentralization guarantees data reconciliation as well as ensures all partners in the system have real-time access and view to data exchanged.
2. Reduces System Weakness
Point of System Weakness are usually areas where there are high cases of systemic failures, service inefficiencies, bottlenecks as well as corrupt points. Decentralization brings functionality, and equal usage of all system points which makes it difficult for grey areas capable of corrupting the ecosystem.
3. Maximizing Resource Distribution
Just as we know that Blockchain Decentralization entails evenly distribution of data to all system participants, Decentralization helps in optimizing resources shared within the ecosystem in order to curtail incidences of damaging system failures. That is to say, Decentralization in Blockchain systems enhances the performance consistency of data distribution.
Comparing Blockchain Decentralization with Centralization
Comparing Blockchain Decentralization and Centralization can only be done ideally if measured on some user cases.
a. Network Resources
Network Resources are managed and maintained by a single font in a centralized system whereas Network Resources are maintained by all participants in a decentralized system.
b. Data Updates
In a centralized system, data are controlled by a single entity whereas a consensus of all participants brings about the fork in which data are added to a decentralized protocol.
c. Control Access
The control mechanism is maintained by an entity in a centralized system whereas no one is known to own the controls mechanism in a decentralized system. Everyone who participates in the system owns the data distributed in a decentralized protocol.
d. Security of System
This comes solely from a unitary point in a centralized system whereas the security of the system increases with the number of participants in a decentralized protocol.
Improving Blockchain Decentralization
There is no perfect system despite what it brings to the table. Blockchain Decentralization is no exception driven by the tradeoffs inherent in its protocol. As we already observed in the Blockchain concept where Decentralization, Security, and Scalability are its primary components, Blockchain builders consider and prioritize Decentralization and Security and hence play down Scalability. This is where the term Blockchain Trilemma came about.
Due to the configuration of the Blockchain protocol, it could only allow full functionality of two of these features which hence leaves the third feature less active. This leaves the Blockchain developers with the option of playing less on scalability which determines System performance.
Notwithstanding, there has been the development of third-party channels which sees that most offline transactions are carried out in this channel which helps in offloading and decongesting main chains for improved performance. These external channels handle most micro-transactions. A typical example is the Electrum which handles microtransactions in Bitcoin where the initial and last transactions are captured on-chain with other transactions offloaded to the external channel.
Moreso, improvements have also been observed in the use of consensus mechanism protocols. This has since added increased scalability in the use of the Blockchain Decentralization concept. There are different consensus mechanisms in use but they all vary based on the different concepts inherent in all of them. Some of these include; PoW, PoS, DPoS, Proof of Capacity, etc. They have been greater transaction throughput while using some of the improved consensus mechanisms.
Thank you all, for reading through my article.
Written by: @xkool24
I believe decentralization is what simply differentiate the blockchain from the normal way of banking we use, as an individual, we all love the idea of being the one fully in charge of our assets, no pressure of attack, no charges for keeping the money.
Decentralization is simply the key role in cryptocurrency.Goodluck in your entry sir!!
You're very correct with those statements. It's emergence was able to ameliorate most of the shortcomings of our present centralized systems . Than you @badmus-official for stopping bye here.
Decentralization is no doubt the key to trusted, reliable and secured banking or financial system hence the last hope for cryptocurrency. One cannot be certain and assured of his or her assets outside decentralized blockchain, fraud and deception is also unavoidable. Decentralized blockchain is indeed the safety, security, and total ownership of our assets be it in the crypto space or traditional banking or financial system. Big thanks to you for such awesome post and best of luck!!!
Decentralization is that key feature that differentiated the traditional system from the new normal- Blockchain technology. It has continued to add a trustless, security and power to all a sundry.
Thank you for commenting.