Steemit Crypto Academy Season 5 Beginners' course - Task 4:Blockchain, Decentralization, Block explorer
Introduction
Hello everyone, am very happy to take part in this tasks which has to do with blockchain, decentralization and block explorer. I will put in all my efforts in answering the following questions.
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
Decentralization has to do with freedom to do whatever you want to, at a particular point in time, without depending on any central authority to perform it.
Decentralization in cryptocurrency has to do with the ability in which a user or an individual and perform any transaction in his or her accounts wallet and with at any point with them without any third party or central authority interfering in the transaction. It gives the individual freedom to manage and control their accounts and by this can be able to perform any transaction at ease or comfort zone without needing anyone assistance, which means it is the individual that makes his or her decision on how assets are being managed and all through and with a very strong security system.
Source
Decentralization can also be said to be an ability in which an individual can make transactions such as trading, which comprises of buying and selling of cryptocurrency assets, such as Bitcoin Dogecoin, without any third party such as bank manager to interfere or intervene in the transaction, thereby making the individual the decision maker. One important thing to note about transaction is that it is being done using decentralized exchange. It is fast, secure, and it's a lower commission that is being charged and everyone has freedom of expression. Example of decentralized application is steem, uniswap etc.
Describe the advantages and disadvantages of a decentralized system
Advantages of decentralized system
Independence
In decentralized system, an individual does not depend on anyone like third party or central authority in making decision and by this it means transaction can before without restriction since he or she can make it without any party difference.
Transparency
In decentralized system, you cannot fake any transaction or lie about it because the details of the transaction is always made available to everyone. And there is also a technology in which records of all the transaction that is before is recorded(smart contract)
No fraudulent activities
Here, in as much as you are the one that control your accounts, and also the one that makes decision or manages the account no one can access your accounts. Without your knowledge to fraud you of your asset.
Fast and effective way of transaction
In decentralized system, transaction made is always fast and effective. And the rate of commission charges is always low which makes it interesting not delay of having to wait for approval of anyone before you can before a transaction but rather you can sit at your comfort zone and perform it.
Security
One of the most important thing about this in the July system is the security system as action performing is always very secure and cannot be easily hacked by scammers.
Disadvantages of the centralized system
Once a transaction is being performed in the decentralized system, even if the user mistakenly sent it to the wrong account, there is no possibility of reversal and by this the funds is going to be lost.
some politicians make use of the decentralized system in keeping looted funds to avoid being caught by the bank or government for money laundering.
There is not a party, which will have individual if this you face challenges. Individuals that are making use of decentralized exchange
Individual must have idea about blockchain and have a mobile device with a good network system to be able to make good use of it.
In what areas of life can a decentralized blockchain be helpful?
EDUCATION
Here, it will be helpful in education in making sure that corruption is being eliminated. In that especially in my locality, people can pay money to get the certificates without passing through the normal procedure, but with a decentralized system, this cannot take place because all the records about the student will be kept or when he started the institution so when he graduated, so, therefore, it will not be possible for the students who pay for the certificate. It can also be using Saving students information for reference purposes
ELECTION
It will play a great role in helping to eliminate corruption during election process in that people will be sure that it's will be transparent during counting, which will make them know that whoever wins is who the people want not rigging it to favor the ruling party.
HEALTH SECTOR
It will be of great help in the health sector in that the patient's health record is kept and all the information about the patient keep so that any day the patient visit the hospital there will be no need of running tests, which has already been done already on record, will also help during emergency because all information about the patient will be available, is just to retrieve it and start treatment immediately to save life.
FINANCE
Here, it will help the citizens to know how the country funds are being used because of the transparency and by this it will thereby reduce the way our our politician or leaders misuse funds that was meant for the community projects in doing important things.
CONCLUSION
The lecture is an interesting one and I have really been impacted about what decentralization is and it advantages, I also know how it can change our life in so many way.
Thanks to the prof for this impactful lecture.