Crypto Academy season3 || Beginners' course- Task2:Blockchain,Decentralization,Block explorer by @yousafharoonkhan
Hello cryptoworld,
Special thanks to prof. @yousafharoonkhan for the wonderful lecture. Its simple and less complicated. Thumbs up.
I will be answering question 2
(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)
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Introduction
We cannot talk about Decentralization without talking about blockchain
Blockchain is a decentralized digital ledger that stores, copies, and distributes data across all computer systems linked to the network. It makes use of Distributed Ledger Technology (DLT), a decentralized data system that is secure, unchangeable, and simple to use for keeping track of network transactions.
DECENTRALIZATION
Decentralization in blockchain is simply defined as the distribution of power or control over data and decision-making among members of a community or network system rather than to a single body.
To put it another way, with decentralization, no single body has the ability or control to make decisions on its own; instead, decisions are made by consensus among the members.
OR
Decentralization is defined as when an association or organization's functions, particularly those related to arranging or adjusting dynamics or making decisions, are spread from a single point of authority and provided to the people.
Decentralization ensures that all transactions, records, and data in a computer system in this network are transparent, secure, and safe, as data cannot be tampered with. With a decentralized system, all transactions are final.
•Logical decentralization is one type of decentralization followed by
•Decentralization of the built environment and
•Decentralization of power
Describe Advantages and disadvantages of DECENTRALIZATION
Advantages
Fast decisions
In a decentralized system, every entity makes decisions fast and there is no need to consult a third party before making a decision. It becomes more efficient in transactions as a result of this.Security
Transaction data is safe and secure with decentralization because it involves all computer systems on the network verifying the validity of each transaction and confirming it before it can be added to the network database chain. Once a transaction has been validated, it is difficult to change the data since any attempt will be detected by other computers, and safety measures will be implemented immediately.Effective communication: Without a hierarchical structure, there will be fewer communication gaps.
Affordable transaction fees
Because there is no third-party interference, the transaction cost in a decentralized system is optimally low. This reduces the network system's transaction costs.Reduces the number of weak places
Decentralization aids in the reduction of weaknesses in systems where there is an excessive reliance on a single entity, as any weak point in the network can result in systemic failures and the failure to provide expected services to all computer systems on the network.Transparency
A decentralized system provides its users with a trustless environment. Every entity makes all transactions or decisions collectively, and every entity can see them since each member has a copy of the extent data communicated in the form of a distributed ledger (DLT). To prevent any sort of manipulation, all transactions are transparent and confirmed by each organization.Accuracy
A decentralized blockchain's transactions are always reviewed and confirmed by the network's many thousands of computers. This is accomplished by the combined efforts of all members, rather than relying on a single body to avoid errors.
DISADVANTAGES
Incompetence: Giving power to everyone can backfire in the long run because we all have inept people on our team.
Cost of upkeep
Building and sustaining a decentralized system is extremely costly.Transaction Time Is Slow
Transactions in a decentralized system take a long time. Because all nodes must approve and validate a transaction before it is confirmed, transactions occur per second. This results in a long transaction time.Coordination Concerns; When there is complete autonomy, coordinating issues are going to arise.
Requires highly qualified individuals
Because it is fairly complex to handle, decentralization necessitates the usage of persons who are knowledgeable and well-trained.
In what areas of life can a decentralized blockchain be helpful? (write in own words)
Sector of commerce
The use of a decentralized blockchain in a business will be seen in storekeeping, which entails storing and keeping track of all products bought into and sold out of the store. This program can also be used by chain suppliers to store the originals of their products, which will aid in the authentication of things purchased by customers.sector of health
In our health-care system, a peer-to-peer system would usher in a slew of changes. It would save both the time of the patients and the time of the doctors. Every patient's data will be saved in the blockade. All of the patient's records would be stored on the network, regardless of where he or she had treatment. The health blockchain system would save all previous medical prescriptions and data.The banking and finance industry
Integrating decentralized blockchain technology into the banking and financial industry speeds up transactions. With a decentralized system in place, bank transactions will take less time, and banks will be able to operate even outside of normal business hours because funds may be transmitted more quickly through the internet. Using a decentralized structure in banks is also a good idea.Election
This, I believe, is the most essential industry in which a blockchain system may thrive. Taking my own nation, nigeria as an example, which is a developing country, voting is done through a crude ballot box mechanism. It would be a game-changing move if we implemented a blockchain voting mechanism. The blockchain would be used for everything. There'd be no way for cheating to survive.Storage of personal data
In our everyday lives, the adoption of a decentralized Blockchain can be extremely beneficial. Personal information and data can be stored on the blockchain and will be kept safe and secure. If you misplace any of your documents, you can simply retrieve them by referring to your decentralized blockchain data. The accuracy of every data saved on the blockchain is ensured.Area of Industrial Productivity
There are several products, buyers, and sellers in the industry sector. In this industry, a primitive banking system could be very stressful and time consuming. There will be opportunities for blunders in deals.
However, if we choose a decentralized blockchain system in this area, things may become highly organized. Every product would have its own Industrial blockchain system, which would contain all of the product's data. As a result, a Decentralized blockchain technology might be used to bring transparency to the system.
CONCLUSION
Although maintaining a decentralized system is costly and needs experienced personnel, transaction costs are low, and transactions are secure, transparent, and efficient. Decentralized blockchain has a bright future in the crypto sector and other aspects of life, in my opinion.
Decentralization is a much-welcomed blockchain technology around the world, which, if fully adopted by everyone, will make life easier while ensuring security and transparency in all you do with this Blockchain.