Steemit Crypto Academy Season 4 - Homework Post for Task 4
(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)
It has been a great journey so far, and I am glad to have risen to the introduction task 4, I have read and understood the lecture, I will move directly into the answers of the homework post based on my understanding of the lecture
let me see how I could explain this in a layman point of understanding, as a kid I always had my uncles gift me money whenever they visit but I usually save the money with my mom this could be seen as a physical centralized system
on the other hand, now I am old and of age and I save my money by myself. This can be seen as a physical decentralized system
Now defining decentralized system could be said as a system in which every user is his own boss, making his own decisions where every user interacts directly with each other without a centralized body that makes the rules.
In the decentralized blockchain the informations are documented in the node of each user of the network making it very irreversible to change the datas. The decentralized network functions as a very democratic system giving it security and privacy.
Describe the advantages and disadvantages of a decentralized system.
There are many advantages and disadvantages of
NO NEED TO TRUST
Have you ever attempted the stress of trusting someone with your funds, it's very stressful but with the help of a decentralized system there is no need to stress yourself as you have full control of your assets.
ABOVE GOVERNMENT POLICY
with the application of decentralization, government policies that affect centralized semystems such as banks do not affect the decentralized system.
with the decentralized system in place, we are able to make faster transactions as there is no placement for a third party.
TRANSPARENCY The decentralized system is very transparent since each data is save in the node of every user of the network and cannot be altered.
because of the security and rigidity of the decentralized system, it is usually complex and not easy to comprehend unlike the centralized platforms that is user friendly.
remember we spoke about no need to trust but here is the problem if we have no one to trust, who do we hold when things go wrong? that is where the uncertainty comes in
NOT EASY LIQUIDITY
Liquidity of an asset is not so easy like in the centralized platform where the central body does the job for you.
In what areas of life can a decentralized blockchain be helpful? (write in own words)
there are many areas of life that a decentralized blockchain and I will be listing only but a few
NO MONEY LAUNDERING SYSTEM
In my country Nigeria the politicians have a track record of laundering assets and funds but with the application of a decentralized system with 100% transparency every money moved could be timestamped.
ELECTION VOTING SYSTEM
If you have every wished for a democratic voting, if you have ever wished for a free and fair election, then search no more for a solution because a decentralized system is the answer. A decentralized system could be applied to a voting system to ensure that no data can be manipulated
Because of how risky the days has become, a lot of reputable men would love to go anonymous which I don't feel it is bad as we all have our choices to make.
For me I find the lecture interesting as I made more research which confirmed my instincts that the decentralization system was better than a centralized system but everyone is subject to their own opinion which I really can't argue. Thank you all for reading my post and I thank @yousafharoonkhan