Blockchain, Decentralization, Block explorer - Steemit Crypto Academy Season 4 - Homework Post for Task 4

Hello everyone. Hopefully, all of you will be happy and good.

---

Source

Question:

(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)

Decentralization

Decentralization words describe the meaning of the whole concept beyond it on its own. The word "De" means not and the word "centralization" means the process of existence of something with a center. So, the whole word decentralization means the process of the existence of something without any central point or central idea.
In the cryptocurrency world, the word decentralization means the process of the existence of systems and blockchains without any specific central authority.

Source

Every member of this blockchain has the ability to make his own decisions according to his own will. The decision-making and power are not under the control of some specific individual or organization. But in decentralized blockchains, everyone has his own right to his decisions and works. So, each part of a decentralized system is important for his works.

In decentralization, there is no single owner or organization which is controlling the whole system but all the individuals are equal in the order of significance from top to bottom power distribution. And every individual and community which belongs to this system has its own power of making decisions and is independent in this aspect. Computer systems from different corners of the world are linked with each other and run an independent system or chain of blocks known as a decentralized blockchain.

Advantages of Decentralized System

As I have discussed the term decentralization in the above segment. So, now I am going to discuss the advantages of decentralized systems.

• The decentralized system is a safe system as the controlling point of the system is the user himself and he has complete control over his data.
• Only the creator of the data can change the stored data. No one is able to change or edit the stored data in a decentralized system.
• All the users are treated equally and can work together with each other. In this way, a power of self-confidence is developed among the users and they work with more passion.
• Everyone can develop his reputation in the system and he is encouraged by this way that his quality of work will be rewarded more and more.
• A decentralized system develops proper coordination between the higher and the lower authorities and in this way the lower users get opportunities to get success.
• The control of the decentralized system is in the hand of the users and in this way, there are approximately zero percent chances of being hacked.
• The security system of decentralized blockchains is very strong and private.
• In decentralized systems, there is no need of seeking permission from the central authority for making transactions. One can make his transactions easily at any time and anywhere in the globe.

Disadvantages of Decentralized System

As we know that the thing that has advantages also has disadvantages as well. So same is the case with the decentralized system. Some of the demerits of decentralization are as follow:

• In the order of affordability, the decentralized system is a very expensive and very costly finance system.
• Another important and clear disadvantage of the decentralized system is its volatility and disorders of the system.
• The prices of the coins and assets available in the decentralized system increase or decrease randomly and such fluctuations also harm the users.
• Another and the most important demerit of the decentralized system is that the transactions made on the decentralized systems are not efficient as compared to the centralized one. So, this is another disadvantage.
• The misuse of this system also leads to the destruction of the finance system. As I have already described that the users of the decentralized system are freehand and this thing benefits the spammers and criminals to do money crimes.

So, these are some advantages and disadvantages of the decentralized system. It clearly seems that the future of the decentralized system is very much bright and successful.

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

The decentralized system has a vast figure of uses in different parameters of life. Some of them are discussed below:

Record Storage:

The most important and the most amazing feature of the decentralized system is that it plays a very important role in the maintenance of the records and the data of the systems or the businesses. This is due to the reasons that the data which is stored and kept in the decentralized system cannot be edited and changed again. Moreover, all the users and the linkers of the decentralized system can easily approach the record and in this way, they can get benefits by utilizing the stored data and records. Another interesting thing is that it is very easy and simple to put the data or store records in the decentralized system.

Improvement of Banking Sector:

The decentralized system can put a very positive effect on the banking system if adopted there. By choosing the decentralized system in the banking area, we can improve the efficiency as well as the privacy of the transactions as compared to that of the recent centralized system. For example, In the recent centralized banking system, if someone wants to make a transaction then first he had to pass through a complex and time-consuming process. But there is no fuss like this in the decentralized system. One can easily transfer the money anywhere in the globe just with a simple click. Moreover, there is no need to seek permission from the central authority or governance like that in the recent centralized system.

Medical Sector:

According to my thinking, there is nothing more beneficial in the medical field than the adoption of the decentralized system for the storage of data or records of diseases. The information of the diseases of different patients and the information of the related treatment and the medication can be stored in the decentralized system and in this way this data can be accessed easily by the patients as well as the doctors throughout the globe. Moreover, the decentralized system can also play a very significant role in improving the supply and marketing of drugs, etc.

Politics and Governance:

The decentralized system can also play a miracle role in the development and the betterment of politics. As we all know that there is a huge hassle in the field of politics which is corruption ad fraud. The higher authorities of the recent centralized government system utilize their powers of decision and irrespective of the harms and the destruction of the lower public they do injustice and do not provide the proper rights of the public. Such corruption and fraud can be lessened by the involvement of the decentralized system. Moreover, the corruption and fakeness of the voting during the elections can also be removed by adopting a decentralized system because it will make this thing more transparent and corruption-free. Besides these all things, the data about the working and the projects of the government can also be stored in the decentralized system to notice their behaviors.

So, these are some important uses of the decentralized system in daily life. There are many other interesting and significant areas of life where the decentralized system can be adopted.

CONCLUSION

The decentralization means the exiatance of the blockchain systems without the involvement or the need of any central authority or the central controlling unit. These systems are free for the users of the systems. The transactions and funds are under the control of the users, their own.

So, that's all about this task. Hopefully, all of you will like y this post.