Steemit Crypto Academy Contest / S1W3 – Blockchain through the concepts by @beniba
I will start my entry by briefly explaining what a blockchain and a brief history about it.
A BLOCKCHAIN is a form of a ledger that stores or keeps information about transactions digitally where the information is duplicated and distributed across a whole network, hence making it difficult or practically impossible to be tempered with. A blockchain is a collection of different blocks that are stored on each other after verification by network nodes.
The first blockchain to be introduced was BITCOIN in 2009 by Satoshi Nakomoto. One of the driving concepts that responsible for the introduction of blockchain was DECENTRALIZATION
Other concepts of the blockchain are FORKS, BLOCK, CONSENSUS MECHANISM, etc but my favourite concept is DECENTRALIZATION.
Decentralization is one of the foundations on which every blockchain is built on. In simple English language, I will explain decentralization to be a system where there is no central body being set to be the governing body. This gives every user on the system the right to take part in every in decision making. This system gives users the freedom to work independently based on his or her judgements.
ADVANTAGES OF A DECENTRALIZED SYSTEM.
GIVES USERS TO CHANCE TO GROW ACCORDING TO HIS OR HER IDEAS AND ABILITIES: Because of the freedom given to users to work and decide for themselves without any pressure from elsewhere, it gives people to grow based on their abilities without setting limits. No user is restricted from implementing his or her ideas.
High security: With this system where every new block undergoes series of verification by network nodes before it is added to the chain. The network nodes makes sure that the transactions on the block are real and authentic before verification. This feature of decentralization makes it very secured to carry out transactions on a blockchain.
Power and authority is shared: unlike in centralized systems power or authority is not given to a governing body. Every user has equal authority on a decentralized system. This feature gives the user utmost confidence in transactions made on blockchains. Another good thing about this feature is that policies are not imposed on users as they take part in decision making.
HIGH LEVEL OF TRANSPARENCY: with the decentralization system being used users have the opportunity to have access to transactions stored on the block and hence making it very transparent to deal with.
Transactions are fast and simple: the fact every user is at a liberty to do his or her own stuff without restrictions, users can sent and receive money whenever they feel it is necessary without requiring any approval from a central body and this makes transactions faster and easier.
DISADVANTAGES OF A DECENTRALIZED SYSTEM.
- SCAM IS RAMPANT. The fact that everyone is left onto him or herself makes it easier for non-suspecting users to be scammed off their hard earned money or assets.
- Misuse of resources: in the decentralized system users have the right to make transactions to anyone at anytime and this feature gives way for users to misuse resources which could have been avoided if there was a little check on how they spend their funds.
WHY I THINK DECENTRALIZATION IS IMPORTANT.
The first blockchain introduced after the banking crisis in 2008 and one of the reasons for the crisis was the fact that there was deregulation in the banking sector which was implemented by the central governing body. This prompted the founder of Bitcoin to introduce a decentralized digital platform to serve as a an alternative to the local banking system. So decentralization is the founding rock on which blockchain is built on.
Another importance decentralization has on blockchain is the fact that transactions can be made at any time at any place provided you have a smartphone with you. This makes it very convenient to use the blockchain as compared to the local banking system where one will have move to a branch of his or her bank.
Furthermore decentralization on blockchains makes it possible to trade without limits. In the sense that you can transact as much as you want provided you have funds on your wallet unlike the local banking system where daily limits for costumers. This also gives blockchain an advantage.
Another important feature decentralization brings to blockchain is anonymity: because of decentralization on blockchain identification is not a priority. In this case the only needed information is the wallet addresses. So users find it safe transacting on a blockchain because their identities are kept hidden.
DO I THINK THE EXISTENCE OF BLOCKCHAIN WOULD BE POSSIBLE WITHOUT THIS CONCEPT? IS THERE AN ALTERNATIVE.
On my personal point of view I would say that yes the existence of blockchain would have been possible without this concept just that it would have been missing certain features it currently has. The blockchain system would have been in existence but in a centralized system where there will be a central body controlling the blockchain and being responsible for the verification and authentication of blocks. That will have been the alternative concept that could be used.
Centralization is the direct opposite of the concept Decentralization. Centralization is a system where there is a single body or entity known to be the governing body of that network just as seen in the local banking sector where they are set of people appointed to be managers and directors of the bank.
In this system power or authority is given to a group of people known to be the governing body so they decide and impose decisions on the ordinary users.
Transactions on a centralized system are verified by only the governing body and hence makes it prone to errors and attacks.
Security on a centralized system can be compromised since the governing body can be compromised.
Identification on a centralized system is mandatory so privacy is not given in such a system.
Do you think it is possible to improve this term in some way? Explain us how
Yes I personally think that decentralization can be improved in some ways on the blockchain system. One aspect that I think can be improved is in the aspect of security. I have observed that crimes on decentralized platforms are very rampant in recent times. This can be traced down to the fact that users are anonymous on decentralized platforms. I will suggest that at least a little bit of identification be made mandatory on these decentralized platforms so that criminals can be tracked and punished. This will go a long way to reduce crime on decentralized blockchain.
Another aspect where I think can be improved is the issue of sending to wrong addresses. I think it can be improved by making it possible for the network to check for the validity of the addresses and if an address that was entered doesn’t exist the user will be prompted to check the address again.
Blockchain technology is growing very rapidly in the world and has proven to be one of the best technologies that has been introduced. One thing that has made it possible for this feet to be achieved is decentralization. I always say that decentralization is the foundation on which every blockchain built on.
Thanks for making an entry into the contest. Unfortunately, you have only returned to Steemit to take part in the contest in the Academy after you had powered down about 4 months ago. I will urge you to continue interacting in the communities on Steemit, you may be qualified sometimes later.
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