Decentralization || By @abduljawad002 - Steemit Crypto Academy Season 4 - Homework Post for Task 4
Hope everyone is doing good.
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.
Decentralization basically means the dispersion or seperation of authority amougst different parties. Hence the same ideal of Decentralization in cryptocurrency, allocating powers to individuals to make decisions universal and diverse. This makes cryptocurrency more trustworthy and reliable leading to the long lasting of that cryptocurrency.
In a decentralized cryptocurrency system no user has to trust someone on the person's word, the exact copies of the transactions performed by that user will be made available for everyone on the platform for the user to decide whether to trust the user or not. Lets take Paxful for example if you go to buy or sell bitcoin or any other crypto you dont decide on the name of the person or the statue, rather we check the transactions he just made and his feedback from those he's traded with and if the comments are positive then we are good to trade which makes this platform trustworthy hence the whole decentralized system of cryptocurrency.
Describe the advantages and disadvantages of a decentralized system.
● Efficient communication. Due to decentralization users are able to connect directly with one another which makes communication efficient by eliminating the need for a third party.
● Growth and diversification. For example in steemit platform some user are permitted by growth to do as they wish in some areas like, organising a competition, starting a community and others. This is the main idea of growth and diversification.
●Ease of expansion. Decentralization has made it much easier for expansion to be posible because of it's key value trust, with a trustworthy system, no one questions the legitimacy of the platform because every and all records are recorded and saved on the nodes of the system and made available for other user to access.
●Relief to top executives. In steemit for example, there used to be a lot of pressure on the steem curators and all others responsible for the verification of achievements. But now with the introduction of steem geeter it has created a sense of relief to steem curators and has made the verification process much faster.
● Volatility. Decentralized systems are volatile because as we know for example bitcoin or any other cryptocurrency can fall up to over 20% a day and the reason will be because the government of that country is deciding whether to accept or reject bitcoin or that specific crypto into thier country. And not only that, cryptocurrencies are highly volatile due to other reasons.
●Anonymity is also a key part in maintaining the cryptoworld which means the revelation of the identity of "Satoshi Nakamoto" could negatively impact the cryptoworld.
●The decentralized system is not beginner friendly. The first time of navigating the platform for example steemit platform without proper guidance could be a total disaster.
● Transaction fees. I personally have first hand experienced a transaction fee of almost 20 dollars from making a transaction from my Paxful account to anoutside account .
● Decentralized blockchain can be really helpful in combating security of local accounts because it is nearly impossible to hack into a whole decentralized network.
●Decentralized blockchain can also help with the issue of anonymity. Like keeping the names of donars unknown to other people for personal reasons and also to respect people's views.
● Decentralized blockchain will most importantly reduce the violence involved in voting. With decentralized blockchain method no one has to be physically involved, and when there is no physical contact it us hard to instigate violence.
In conclusion, i must say that this lecture have made me realise what was infront of me for so long that is the use of decentralized blockchain to curb real life problems. I don't think i would have evrr taught of that without this lecture. My regards to prof. @yousafharoonkhan.
Than you.