Blockchain, Decentralization,Block Explorer||Steemit Crypto Academy season 4|| Beginner's course||Homework post for task 4.
(1) Write the definition of blockchain. And how our data on Blockchain is protected from hackers. ? And write details about Data, Hash and Previous Hash tag and explain through screenshot.
(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)
(3) What is a block explorer? And what is its purpose and use? Search for different cryptocurrency block explorers and list them below. At least five different crypyo currencies. Also explore the transaction of a crypto coin on block explorer and explain with the help of screenshot.
I WILL BE ANSWERING NUMBER 2 QUESTION
It has been said and again said that
"The only way to control chaos and complexity is to give up some of that control"
A lot of people feel decentralization may lead to Consolidation of elite power at the local level.
Do you also feel the same way??
Let's find out!
In this post,I will be taking us on a wondrous ride towards exploring what decentralization is and other things associated with it!
Please sit back and enjoy this adventurous ride🤗
Decentralization just like it sounds can easily be deciphered in layman term as "when something isn't centered or in the center",quite alright,you will agree with me.
However,before I delve into the Crux of explaining what decentralization really means in real sense,it is only pragmatic of me to loosen up some ties and knots connected to decentralization.
For a better and crystal clear explanation on decentralization we have to first unravel what "Centralization" is.
Categorically speaking,one of the things that prompted and brought about decentralization is centralization!
Once we are able to understand what Centralization is, then I suppose understanding what decentralization means would be a walk in the park.
Yes,that is the feeling!
For long, the world have dwell solely on this controlling system (Centralization)that operates on the "bend or break" kind of principle.
It is a kind of system or control system that is handled and operated in the middle by a central authority or body.
This body or authority dole out policies,rules and guidelines to follow and they must be followed without any form of opposition from anyone because this bodies are the system,they are in control of the system and only their decision can influence the running of the system.
Now we can liken this to our country's central bank and our local currency.
The central bank in our respective countries serve as the central authority when dealing with money flow and regulations in the country.
The central banks can sometimes make certain unfavourable policies and decisions like E.g increasing tariff and interest rates and also invoking negative interest rates which in turn have adverse effect on businesses and transaction activities, leaving business men and women vulnerable,even collapsing some businesses that can't cope, but because people have no choice, they succumb to the authority, because they are the central authority and the system being practiced is a Centralized system.
Another instance of Centralized system is the school system
In the school settings,the central authority is the school authority or governing board of the school which comprise of the headmaster, teachers and probably the non-teaching staff too.
This body makes the rules and you dare not break any!
And lastly the social media platform that we make use of every day,the likes of Facebook, Instagram and Tweeter just to mention but a few.
These platforms operates on a centralize system,all your information are with them once you register.
Every of your activity on the platform is monitored because you operate on a center server of the social platform and when you go against the rules or community standards you are penalized!
This is what Centralization is about,you are bound to certain rules because you are not in control!
it is the total contrast and opposite of decentralization.
Having understood what Centralization is,our walking towards explaining decentralization will be child's play.
Decentralization is the repositioning, dispersal and delegation of control, decision making responsibility and day to day operations from a central authority or body down to the system of individualism whereby empowering each person to be in total control.
There is certainly no way we are going to have a conversation about decentralization in the crypto world without mentioning Blockchain.
Blockchain as a decentralized system provide room for transaction activities solely between two party who are ready to do business together, making the necessity for a middleman outdated.
Blockchain operates on a kind of peer-to-peer transaction mode without the intervention of a central authority.
In decentralized system,every individual is fully in control of their assets and are entitled to their opinion and decisions making responsibility unlike the centralized system where the rules are made by a certain body and control power is sited at a point.
Decentralized system create an empire for each man to rule,make the rules and bend them at will because you are the authority in that space.
It is also imperative to note that unlike the centralized system that operates on a center server,the decentralized system operates by the combination of thousands of computer from different individuals,making each computer serve as a server.
I want to believe I have been able to dissect what decentralization mean to a considerable extent.
And that brings us to the next question
Decentralization has proven it efficacy as a system that favours the masses,but you would agree with me to a very large extent that there is technically nothing with an advantage that doesn't have a disadvantage.
Decentralization comes with lot of goodies,but we can't shy away from the dentrimental side of this system
In this part of the question,I will be highlighten few of the merits and demerit of this system.
•ERADICATION OF MIDDLE MEN/INTERMIDIARY:Recall I said decentralization operate on a peer-to-peer transaction network,this inturn has rendered useless the need for middle men or intermidiary when carrying out transaction or business activities.
•SECURITY:A decentralized system that operates under blockchain has proven it efficacy has a tight means of securing funds,data and Information.
It is practically impossible to hack, infiltration or breach because it makes use of keys and others safety mechanism/tools for operations.
•TRANSPARENCY:For dubious individual,this might be more of a disadvantage.
But on a factual standpoint,this is an advantage when business activities is being done and between two parties..It create no room for cheating!
It also breed trust between partners as well as creating room for openess because nothing is conceal or hidden in a decentralized system under blockchain.
•NO INTERVENTION OF CENTRAL AUTHORITY:Just like we already know what a decentralized system is,the system is run by individual, creating no room for interference of a central authority..
All decision making responsibility lies solely with each person.
•LOWER TRANSACTION COST:Often times, the cost of transaction skyrockets because of the role played and involvement of intermidiary and middlemen in business transaction or activities.
Once the need for middlemen is dissolved, transaction cost is reduced to a considerable amount.
•LOSS OF CONTROL&LACK OF COORDINATION: this is one of the major disadvantages of a decentralized system. People start banking on the fact that they are the central authority in their respective space and they start working autonomously in their own interest...
This is prone to happen anyway,since controlling power doesn't lie at a point anymore but in a diverged state.
•UNEVEN/NON-UNIFORM POLICY:policy making is not coordinated and equal,people tend to make decisions that suit their taste whereby making the market irregular and unpredictable for investors and businesses.
•COSTLY TO OPERATE:To operate or practice this system for one's business is most times tasking.
One has to hire qualified and professionals in the field because not every one truly understand this system.
To employ these specialist and professionals who are in most cases not readily available,one would be ready to cough out a huge gob of money!
It is now dawn and beyond reasonable doubt that blockchain technology possess the potentials to revamp many areas in the world today.
Before highlighten areas where blockchain decentralization can be helpful if incorporated into them,it would be judicious of me to re-accentuate what blockchain means.
Blockchain which are blocks strategically arranged and chained together just like it sounds is a ledger that records data and validate transaction across several computers which serve as server and are somehow linked to a peer-to-peer network without the need for intermidiary.It is practically impossible to hack or infiltrate.
Having elucidated this,one can now imagine areas where this blockchain system can be incorporated in real life and how effective and helpful it will serve in these areas.
I have compiled a list of some area where blockchain decentralization can be helpful,below are few of them:
-BANKING SECTOR:This shouldn't prove shocking at all.
If there should be any sector or industry that should embrace blockchain decentralization more,then I suppose the banking sector should top the list.
Banking sector deal with finances and blockchain has proven it efficiency in securing funds meticulously with it strong security mechanisms.
I hope you haven't forgotten that blockchain also operate on transparency principle,this will inturn breed trust between customers and conventional banks.
There are many ways blockchain can be effective and helpful in the banking sector,this is just the tip of the iceberg.
-Sport Industry:Recall I said blockchain operates on a peer-to-peer transaction network without the need for middlemen,so imagine when this is instiled into the sporting industry.
It would automatically provide direct connection between Fans and athletes.
With the use of fan club token, fans would be able to interact directly with their sport club or favourite athletes without the need for intermidiary.
Fan can as well take part in decision making responsibility in their club through blockchain decentralization and also invest in form of crowdfunding a project for their club and then get rewards from the club's future earning.
-POLITICS/ELECTION: Democracy which seem to be the most accepted and fair system of government in the world today is faced with a major challenge which is Electoral Rigging of election results.
This has been a major setback in this system of government during election process to choose new leader.
But once blockchain is inculcated into this sector,the loophole or lacuna that allows electoral rigging of elections is barricaded.
Blockchain operates on transparency principle which inturn eliminate fraud and curruption during election when election is conducted through a decentralized blockchain system.
I believe that I have done justice to this question to a very large extent.
Decentralization which is the delegation of control from a system of centralization down to the system of individualism has proven to be a system that favours many.
Decentralized blockchain if inculcated into the banking,health,politics and even sporting sector,the results produced will be massive and unprecedented!
But we still can't shy away from the fact that it can prove dentrimental in some cases.
Thanks for reading through🤗