Crypto Academy Season 3 Beginners' course - Task 2: Blockchain, Decentralization, Block explorer by @doctor23
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)
When we talk of decentrazation, we mean power is not centalized or controlled by a unique individual, but every user, or everyone in the population has equal
right. The decentralized system actually means that every user is empowered in the decision making.
The decentralized system has the following characteristics:
- Everyone enjoys freedom of expression.
- Power is disolved to lower levels
- Everyone associates in the decentralized system.
- Everyone works with full authority.
With this, We can say it is the transfer of activity in an organisation or a body to several other local offices or sub-parts. when we talk about a centralized system,
we mean every activity is control by a head or a single body which gives rules and regulations that every other participants or users follow.
using practical examples,
i will begin explaining decentralization in a country and further explaining it using a business.
lets take for instance a decentralized nation like that of Nigeria, decision making is done by all the various states, accepted before it is being executed.
each city is independent in its decision making and is unaffected by the central head. now lets take a centralized country like that of Tchad or Cameroon.
Each decision being made is made totally and solely by the central authority and all other individual have no choice than to follow the said decision.
now, in explanation to business relation,
when Business is being carried out in a decentralized system, the individual carrying out the business is fully empowered to carry his business. i this scenario,
you can decide when to exit or enter, depending on your profit or loss being made. contrary, carrying out of business in a centralized system will mean you ara entitled to
to decisions been made by the central authorities.
The various advantages of decentralized system are as follows;
- with a major fact of the decentralized system being that, power is transfered from the top to bottom, everyone in the decentralized system enjoys equal opportunities.
- frauds is often reduced in the decentralized system. as everyone participates in the decision making, and enjoys freedom. Fraud and corruption has always been noticed greatly in the central system from central authorities.
- Hackers in the decentralized system are often filtered to a great limit. also data stored inn the decentralized system or the decentralized blockchain can not be compromised by another party.
- traders in the decentralized system participate in the market when ever he or she wishes to participate.
- every user in the decentralized system has freedom of expression can take their own decision.
- there is high level of transparency in the decentralized system.
- no one can be deprived in the decentralized system.
No matter how good a system is, it must always have a little drawbacks or Cons that will pull the system behind. below are the disadvantages of the decentralized system.
- Common crimes are committed using the decentralized system by fraudsters since they have full authority of their account. an example is money crime, as they can send and receive money at will anytime.
- Making decisions is a common practice for every individual. some people face poor decision making in the decentralized system.
- launching of decentralized systems like the decentralized blockchain has proven to be time and money consuming.
- The decentralized system requires a lot of skilled personels. for example is mistake is made in the transfer of money from one account to a different account, it can not be recovered.
practical usage of decentralized blockchain involves the usage of the system in various aspects of life. here are a few examples:
Election and Politics
As i explain earlier above in the definition in decentralized systems, we found that, we can use decentralization in the governing of countries.
For example, we have noticed that a lot of fraud is been noticed in centralized governments during major elections and other activities. But with a decentralized system during such activities, fraud is often eliminated.
In Health
In a decentralized system, patients always have the tendacy in decision making during critical situations as they can visit different locations and as well undergo continous treatment.
In Land Revenue
In this sector, land records are stored in the decentralized blockchain, irrespective of which country is concern. this is often used to eliminate completely the levels of fraud and corruption in this sector.
Banking and Transaction
Frauds and corruption are reduced to a great level when the decentralized system is being applied in the banking and transaction sector.
Cutting of Middle Man
Middle men has been noticed to make a huge profit through transactions as they act as middle men, making transactions really expensive. With the usage of the decentralized blockchain, transactions turn to be fee-less.
Thank you