Crypto Academy Beginners' Course Task 2: Blockchain, Decentralization, Block explorer
This time I want to do task 2 of the basic task in #steemitcryptoacademy, I chose question number 2 to work on.
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)
The definition of decentralized blockchain is different from the definition of decentralization in general, general decentralization such as the handover of power by the president to the governor, or the handover of decision making by the CEO to managers, while the decentralized blockchain does not have a central authority, but it can still work well.
Decentralization in blockchain is the transfer of control and decision making from a centralized entity to a distributed network. So that decision-making in blockchain decentralization is completely left to the users of the blockchain network without one individual being able to impose his will on other individuals without the approval of the majority of system users, this is certainly very different from centralization and general decentralization.
Decentralized blockchain prioritizes public interest and transparency in all fields, so that we are free to manage our own wealth without interference from others and do not have to trust anyone. Everyone on a decentralized network has the same copy of data in the form of a distributed ledger (blockchain), so we cannot manipulate the system by changing the ledger for personal gain, this will be rejected immediately by other members on the network due to mismatch data.
The decentralized blockchain system is still limited in all respects in this world, this is because the state prioritizes the centralized system. With a centralized system, the state can control all its residents, including our property. It's not that the decentralized system has no drawbacks, only that decentralization is superior to centralization, the following are the advantages and disadvantages of a decentralized system.
- There is no need to trust anyone, people who are on a decentralized blockchain network do not need to trust anyone to manage their assets. As explained above that everyone has the same copy of data on a distributed blockchain so we don't need to trust anyone in managing our assets.
- Improve data reconciliation, data stored in the decentralized blockchain network is immutable so data will not be lost or changed. This will prevent data loss or data discrepancy between each other, because each entity has access to a real-time view of shared data.
- Optimally distributed resources, decentralization provides services with more performance and consistency, this will certainly reduce the possibility of failure in the system.
- Transaction times are faster, compared to centralized systems which take a very long time, decentralized blockchains only take a few minutes.
- It is not permissible to make the slightest mistake, because the data is stored together and cannot be manipulated so that the transaction errors that we make will be immediately recorded and cannot be changed again.
- It can be used for crime, because it is anonymous and cannot interfere in other people's assets so that it can be used by criminals to extort someone or conduct drug transactions and the like.
- Volatility, people who are members of a decentralized blockchain network are free to manage their assets and free to express themselves, so that people can set buying and selling prices as they like.
I think blockchain decentralization will be very helpful in all areas of our daily life, for example for political affairs, companies, finance, and other fields. But this may be difficult to implement because of the need for a centralized system that is carried out by each company, look at exchange platforms that are closely related to cryptocurrencies and blockchain mostly also use a centralized system.
Following are some areas of our lives that would be of great help if a decentralized blockchain system were adopted:
Many companies store data offline or online but with a centralized system, so this will cause data loss if the software is damaged or hacked. However, with a decentralized blockchain system, data will not be able to be hacked and also prevent data loss.
Most countries and companies implement or operate a centralized financial system, so not a few report losing money or being hacked by others. Imagine if the world's financial systems such as banks and others adopted a decentralized system, this would certainly prevent losing money or being hacked and also allow all users to access in real-time.
The democratic systems run by some countries may be manipulated for personal gain, so that it is possible to change and regulate the results of presidential elections or otherwise due to lack of transparency. The system is managed by an organization i.e. election watchdog which allows it to be fraudulent by accepting bribes.
This certainly will not happen if we adopt a decentralized blockchain system, the incoming data is stored and managed together in a transparent and real-time manner, so that no one can manipulate the data and it is also impossible to hack it.
Thank you to all the professors who spend their time and energy teaching us new knowledge about crypto every week. Sincerely for all professors and students of steemitcryptoacademy.
Cc:
Professor:
@reminiscence01
@awesononso
@lenonmc21
And also to other professors that I didn't mention.
Hi @agus-kamil, Thank you for taking interest in the 2nd Task of the Beginners Fixed Class. Your grades are as follows:
My Review and Suggestions:
This statement is more suitable to be included in the advantages of decentralization, because that is what makes the decentralization system feared by many unhealthy institutions.
The discussion you made on sectors that are suitable for decentralization is too general, try to find other sectors.
Provide some pictures to make your task more interesting.
Vary headers and sub-headers to make them look more attractive.
Thank you!