Crypto Academy Season 3 Beginners' Course - Homework Post for Task 2: [Blockchain, Decentralization, Block Explorer]

Hello once again to everyone at Steemit Crypto Academy. I qualify the requirements to be part of this CryptoAcademy Beginners Course. So after submitting my first homework task, I present my second Steemit Crypto Academy homework task here.

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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)

Define decentralization.

To put it simply, decentralization is the mobilisation of decision making power from one central authority to every stake holder. In a decentralized system, every user (or stake holder) is empowered with full autonomy in decision making. It follows a bottom-top approach which helps in better functioning of the system and derives quality overall output.

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Concept of Blockchain and Decentralisation

A Block is a place for storing information while a chain connects previous block to the next. When data in all blocks connected with the chain is verified, it is called a blockchain. Now it is indestructible.

The Blockchain technology is decentralised in nature, so it stores data in different computers in different locations across the globe (nodes). There is no central node where all the data are concentrated. If there is any attempt to alter data, the other nodes can scan, identify and correct the attempted tampering. That is why blockchain database is transparent and decentralised.

For example, Steemit is a social media/blogging dApp (decentralized application) that runs on STEEM Blockchain.

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Describe the advantages and disadvantages of a decentralized system.

Advantages:

• Every user has his/her say in the decision making process.
• Due to decentralization of the whole system, it eases the burden off the shoulders of the executives and people at the apex positions.
• Funds are at safe haven and there is low to almost no chance of pilferage of funds by dubious means.
• The system allows people from every nook and corner of the world to share their expertise and also learn and engage with fellow users at the same time. This is an important feature of a decentralized system.
• It enhances user participation and co-ordination thereby helping in proper governance of the entire system.
• Data is transparent and accessible to all, but cannot be customized. As such, secure information is not compromised.
• The feeling of deprivation among users vanishes since every user has influence or weighted stake in the system. So he/she can exert his/her influence in the authority.

Disadvantages:

• This system demands users to have minimum technical know-how to operate the system.
• The system requires dedicated experts to launch, run and maintain the system. This operation also requires a lot of financial investment.
• Many National Governments are keeping close eyes on decentralized cryptocurrency ecosystems since they provide the platform for investing in their tokens. As such it may be the go-to way for criminals to hide their black money when they are suspected in money laundering cases.
• Once financial transaction is done by mistake to a wrong destination, it cannot be recovered.

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In what areas of life can a decentralized blockchain be helpful? (write in own words)

Decentralized blockchain if adopted in day-to-day usage would be an instant hit and become popular among the masses. Here I analyse some areas of our daily life where this system can be used for improved service.

1. Banking services: This, I feel, could be a revolutionary step in the financial sector. With the help of decentralized blockchain, fund transfer between two users can take place in a few seconds.

2. Online business: These enterprises can use this platform to market their products efficiently. This will not only earn them incentives but also cut down on hidden charges, advertisements etc.

3. Health sector: A decentralised blockchain system in the field of medical science would help in record keeping of patients’ history. This will allow rapid treatment and a speedy recovery.

4. Land revenue/Property records and authentication: This decentralised system can help to secure records regarding land revenue of any country. This will help to settle long standing debates and tensions, bringing transparency to the records books.

5. Electoral process: The use of decentralised blockchain will eliminate electoral rigging and fraud by unfair means because once vote is cast via blockchain platform, the data cannot be customised. Hence elections will be free from blame games.

6. Contribute to a greener world: All the above initiatives if adopted will not only save tons of paper but will save millions of trees from being cut down. As a result we can contribute to a green and clean environment.

Apart from these, the decentralised blockchain can also be used to:
Store criminal profiles, compile national citizens register and issue identity documents, etc.

Hence, we can say that decentralised blockchain platform has got endless possibilities if it is adopted for betterment of the society and for improving the standard of living.

That's all in this task. Thank You.

CC: @yousafharoonkhan