Crypto Academy Contest / S1W3 – Blockchain through the concepts by @deben
Steemit will never be forgotten in history, beacuse of the way it deals with crypto accurately. I greets you all in steemit, for a wonderful time to participate in this contest created by crypto academy.
We know that steemit is a Decentralized Blockchain in terms of steemit wallet. Because you can control(buy, sell, convert, power down and up) your fund(Steem, Tron and Sbd) as you desire to do. So we need to explain Blockchain first and some concept found in it.
What Is Blockchain All About
Blockchainis a digital ledger, where all activities and transaction done in a system, is been free from hacking, ease change and duplicating crypto financial services. This is done through the coming together of different nodes, which is enable through peer to peer assistance.
In imaginative sense, this is like and industry where different firm comes together to follow a certain rules or policy's.
Example
CBN (central bank of nigeria) is a block chain and first bank, zenith bank e.t.c. are nodes which makes up CBN. Then the different branch and people working on the bank are peer to peer.
So in this CBN is a ledger where all system of banks follows a certain rules or policy and can not been hacked, changed and duplicating of funds.
So we have discuss what block chain is all about, where all financial system of cryptocurrency are been linked to one system protocol. But Blockchain also posseses some concept, which makes it special and unique to think of highlighting it's concept.
Some concept found in a Blockchain are Genesis block, hard fork, decentralization and proof of stake. But there are also some unique features that Blockchain posses, it is Nfts.
Nfts another concept of Blockchain
Nfts is a blockchain cryptocurrency service rendered for users on art stuff. This means that users who deals on artwork, gained through showcasing there art stuff and gain reward through cryptocurrency. This concept is growing little by little in crypto currency block.
But I prefer Decentralization concept to any concept found in a Blockchain. There are some reason I looked up to decentralization, because this term has favoured me a lot.
Decentralization Concept
Decentralized system is a system of governance, where all activities and transaction are been centered on no authority, but helps to give policy on how fund are been operated. Then, it is in the hand of the user to choose, how he operate his transaction through peer to peer nodes.
This means that nobody has unitary power to dominate over another person's transaction. This means that no user can control another user's funds and assets in a blockchain. In order for a blockchain to be free from risk (hack), the system needs to be decentralized.
There are some term associated with Blockchain chain and it is found in a Decentralized system.
Delegation
- This a system of empowering funds to different nodes. This is also seen in Steemit, where by a steem user empowered a community with his fund, inorder to also raise interest from his capital. Delegation is a concept found in a Blockchain as a Decentralized system, which no one has the power over your fund, but you can empowered a nodes with your fund and still cancel it by following some certain policy.
Mining
- Mining is a computable work, where a certain entity creates finds earning for different user. This concept is a Decentralized Blockchain, because the entity can controls funds, as far as he is the authority who creates nodes for earning. There are also free earning and this is known as referral. A Referral is a nodes who helps to blog another nodes. This means that, someone who invites another person will earn, as far as the person invited has started mining.
Consensus Mechanism
- Consensus Mechanism is a procedure which is decentralized and guides the operation of some activities done on a block chain. This is done before a change is made to a blockchain. This helps to agree on a certain change, which is approved by different nodes via peer to peer.
Decentralized system in blockchain means the control of any transaction done by the owners of the transaction and is guided by different consensus mechanisms i.e policy done on the blockchain which is approved by peer to peer nodes.
Advantages And Disadvantages Of Decentralized System In Blockchain
Advantages
- Reliable: This contains every data’s transaction done on a blockchain, which makes it reliable for users to trace their activities assets.
- Easy Expansion: This helps to expand more features on a blockchain, like creating new blogs every second. This made it very essential for a blockchain to be decentralized.
- Accurate Decision Making: Since a decentralized system is controlled by no single entity, users can decide on how to transact their assets. This will make them have accurate and quick decisions.
- Hacking-free: Since a decentralized key contains private keys, users can be free from less hacking of keys. This will lead to less loss of his assets.
Disadvantages
- Loss of assets: Since there is no authority guilding how funds are transacted on a blockchain, this can make users to scam another user and will steal his funds.
- Expensive: Since there are many nodes seen in a decentralized blockchain, this will cost the creating, maintaining and upgrading of nodes.
- Immutable Data: There is no reversing of data once it has been published. This can occur when a user sends some token to another but cannot cancel or mute the transaction.
Why do you think it is important in the blockchain
Yes, a decentralized system is important in the blockchain, because users can decide on how they transact their assets. So when a user decides to do his best, this will help in expansion of new nodes and will generate revenue to the blockchain.
It has also been a ledger for transactions and provides much information. All transactions done on a blockchain are stored well. So it is important to blockchain, because all data is transparent and it is the policy which guides, approves and verifies the control of transactions and activities done in a blockchain.
It is a well secured foundation in terms of hacking. Private keys are owned by private individuals and will reduce the loss of assets in a blockchain. Decentralization is very important to the blockchain.
Do you think that the existence of the blockchain would be possible without this concept? Is there an alternative or similar term?
Yes, a blockchain can also be possible without the existence of a decentralized system. Let’s remember that a blockchain is created by two terms Decentralization and Centralization.
A centralized system in a blockchain, is where all activities are controlled by a unitary authority. Transactions done on a centralized system are approved by a single entity or a centralized entity. Centralized systems have a private key and are owned by a single entity.
So in this way there are alternatives of a decentralized system to a centralized system, which can make it possible for a blockchain to exist. But the only difference is that a decentralized system has an autonomous power shared among users in a blockchain, while a centralized system have only one entity, with all power vested on it.
In a centralized system, private keys are owned by a single entity and it can make it possible for users to retrieve their assets when loose. A centralized system is like a third party between some users.
Example
When someone wants to transfer money to another person via bank, then the bank is the third party which approves the transaction and can also help you retrieve your money when stolen.
Do you think it is possible to improve this term in some way? Explain us how
Yes a decentralized system can be improved in some ways. If the system has a single authority like the centralized term, which will help to recover assets and funds loosen by a user, maybe through hacking or scamming. This will make a blockchain to have a wonderful review on users and there will be no pain of lost assets or funds. Single entity should find a way to catch hackers and scammers and when they are caught they will be punished severely. This will help to reduce loss of assets and funds.
Also through creation of nodes should be improved, in order to promote more information in a blockchain. So users need to generate revenue, which will be used to maintain, create and upgrade nodes. This will also make the blockchain more transparent and no nodes will be lacking energy. Data’s stored over the blockchain can be traced, when more nodes are been maintained
Conclusion
A decentralized blockchain is the best system of blockchain to me, if only the system will be improved.
A decentralized system has private keys which are owned by various private entities and the operation of assets is decided by their wishes. A centralized system has private keys which are owned by a single entity and are used to control all assets on the blockchain.
Lastly hacking and scamming catch up should be improved in a blockchain, be it centralized or decentralized and they should be given a severe judgement.
Let us don’t forget that blockchain still have the existence of Nfts, which is provided for artist to trade their art work and are rewarded by cryptocurrency,
I will keep on growing in steemit and I will keep on trading in cryptocurrency.
Nice post you have here and you have also chosen a very vital word decentralized. But I think that there is no alternative to decentralisation. The chances of an improvement coming to be is very slim to me. Just as you have stated, If it is not decentralized, then it is centralised and this centralised system is what the Blockchain is trying to get rid of. I love this post.
You are welcome dear. We all need a better system of Blockchain today
You are absolutely right my brother, but I think the blockchain technology has the main goal of ensuring decentralization, therefore it is better off with decentralization, regardless.
Thanks for sharing your opinion, I have taken note of some key things on decentralization in your article.
You are welcome dear. Thanks for support toward my blog, you learned a lot
Un libro de contabilidad digital, permite que las transacciones en un a blockchain descentralizada, se se afirmen y distribuyan entre los interesados.
La Minería es una actividad de lucro donde usuarios se dedican a ubicar operaciones atractivas de compra-venta para poder intercambiar y multiplicar sus tokens.
Muy bien explicado el proceso.
Éxitos.
You've talked about an incredible Blockchain concept, decentralization is one of the most important feature, you've as well discussed the advantages and features in an easy to comprehend language.
I enjoyed reading, thank you for sharing
Thanks a lot, you learned a lot from my post. Waiting to see yours