Blockchain, Decentralization, Block explorer - Steemit Crypto Academy Season 4 - Homework Post for Task 4
Professor gives three question and one can answer only one. So, I decided to answer the second question.
These questions are as followed.
Question:-
Define decentralization. Describe the advantages and disadvantages of a decentralized system. In what areas of life can a decentralized blockchain be helpful?
DECENTRALIZATION
Centralization:-
Decentralization:-
CHARACTERISTICS OF A DECENTRALIZED SYSTEM
- All notes are independent from each other. Because of this everyone has different clocks and they run. Then everyone follows.
- There is more than one central unit so that the connection between notes is maintained.
- It does not work on one type of policy as everyone can able to take their own decision.
- Each of its members is responsible for his own decision.
DECENTRALIZED EXCHANGE [DEX]
Source of all four screenshots as shown above
DIFFERENCES BETWEEN A CENTRALIZED AND A DECENTRALIZED SYSTEM
Centralized System | Decentralized System |
---|---|
It is controlled by single unit or headquarter. | It is not controlled by any single unit. |
It's decisions made by the headquarters. | Everyone can take their own decisions. |
Existence of formal communication in it. | Any type of communication held in it. |
In this system money transfered to wrong address can reverse | In this system money can not reverse when transfered to any wrong address. |
In this system decision making process is slow | Quick decision making process in this system. |
People follow the rules made from headquarter. | No one follow the rules of headquarter. |
ADVANTAGES OF A DECENTRALIZED SYSTEM
The decentralized system is more reliable than the centralized system:-
As we trust the work of the company or any government by investing both our information and money. But some social media companies sell our information to some advertisers. For money and be it they keep an eye on our information. It's not good. On the other hand, in a well-designed decentralized system, we can take a decision that we do not share information with third parties.less chance of failure:-
In the decentralized network, the entire network does not get spoiled due to the fall or loss of any note in the decentralized network. No matter how many consumers fluctuateless censorship:-
It becomes very difficult to censor any traffic in a peer to peer network. Any communication in this outbound message is connected to the decentralized peer system.SECURITY:-
The security of any decentralized system is its most important thing. Because its security is of high standard, so no person can hack it.DISPERSION OF POWER:-
And the second most important thing about it is that no one person is bigger than another. Because it works on the quality of the members.
DISADVANTAGES OF A DECENTRALIZED SYSTEM
- Completely loss of money or tokens if money is transferred to a wrong account.
- Well this lack of information, because everyone gets involved in every activity. that is the problem.
- Absence of civilized banner in any member's activity.
AREAS OF LIFE WHERE A DECENTRALIZED BLOCKCHAIN CAN BE HELPFUL
EDUCATION:-
Which in today's era is used in everything inside education. Technology and everything, because money is being used for everything. Similarly, coins will also be used in the future. That is why it is very important to use discourse in education.BANKS:-
Many people in this world still live in pain because of this because their bank account gets faked. It will be needed a lot in the future. Because decentralized systems are a bit difficult to hack.Hope banks also start adopting it.
CONCLUSION