Hello lovely people around the globe, hope you are doing well. I am glad to learn new things in cryptoacademy. I am writing about decentralization, advantages, disadvantages and uses.

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)

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Decentralisation

Decentralization as the name implies refers to a system that is not centralised. So to understand it better, let me briefly mention centralisation.In centralisation there is central authority or we can say higher authority just like a centre of a circle around which all the points falling on the periphery of a circle are dependent. in centralisation, the central authority has absolute control over all the other members of the system. In decentralization there is no central authority but each member of the system have absolute power and control over his activities. He is not bound to abide the rules and regulations set by the central authority. Each entity of the system is autonomous.

Advantages of decentralised system. .

• In decentralized system, there is no central authority. So power is not consolidated at one place but is uniformly distributed among all the members of the system. So it gives a message of uniformity and equality.

• Decentralized system involves use of blockchain technology, which is a distributed public ledger system, so every activity that is carried on decentralised system is reported on the public blockchain and is accessible to all the members of the blockchain. So it is a highly transparent system.

• Activities recorded on the blockchain are immutable and non editable. By Immutablity and non editablity, we mean that data cannot be erased/edited once it is recorded.

• Since decentralised systems are secured by mathematical algorithms based on cryptography which are difficult to manipulate, so decentralized systems are highly secure systems.

• Decentralised ladger systems when put in use in financial systems , offer many advantages over traditional financial system. Decentralised systems ensure global transactions in realtime and with lesser transaction fee and is available 24 x 7 , so it offers advantage of saving our resources as well as time. It removes dependency on our traditional financial systems like banks.

• The quality of service delivery by means of decentralised system is excellent because it allows integration of the system. All the components involved in functioning of a system are kept under check.

Disadvantages of a decentralised ssystem

• Decentralized system is anonymous , so its use in financial system has raised some serious issues in the past and they are related to misuse of the funds for illegal purposes because the Identity of the user remains hidden. So some miscreants can take advantage of this feature of decentralized system and misuse the funds.

• Non repudiable nature of decentralized financial system raises an issue about loss of funds, in case of transfer to wrong address because there is no mechanism to get the funds back unless the recipient is willing to do so. Moreover tracking of the recipient from the address is not possible and there is no authority to negotiate the issue between two parties.

• Lack of coordination among the members of the system is another concern because everyone is free to work in their own way. On the other hand, in centralised system there is central authority which makes rules and regulations for all the members and they are bound to follow those and fosters sense of coordination.

• Decentralized system makes use of technology that is expensive. For example, in case of mining, hardware is very expensive and has raised environmental issues like indoor pollution like noise pollution and emission of of hazardous gases and foreign particles into the environment.
  Although it is true that this limitation is specific to Bitcoin and cannot be generalized to the whole decentralised system.

Uses of decentralized system.

Record keeping

Decentralised system is the best possible substitute of record keeping in all the existing departments,be they government or non government because of the following reasons:

• Records cannot be manuplated once entered on the system.

• Records cannot be deleted once entered.

• Records are easily accessible by just searching the name of files.

• Records are accessible over the globe. Anyone can check their records anytime and anywhere.

• We will be able to save our resources and time as we know that our traditional record Keeping systems are time consuming and it has lot of manpower at work but is still not worth.

• It will eliminate corruption that is deep rooted in our societies

Finance sector

I personally believe that financial sector will be revolutioned with the adoption of decentralised system because my experience with financial system is very poor. I think the following points are worth mentioning in this regard:

• It will save over time for multiple reasons like transactions are executed within seconds and we can perform transactions anytime and anywhere. We need not visit banks and spend days there. Banking holidays and working hours are always irritable.

• We can perform global transactions in real time unlike our traditional banking system that takes based hours to days to execute the transaction and there are numerous checks and balances on interstate transactions.

• Transaction fee especially on global transactions is is lesser then what we are paying in traditional system.

• The native features of blockchain like transparency , security , auditability will be e imposed in our day-to-day lives too.

Supply Chain system.

If you look at our current supply chain system, we know that every sector has sub sectors to look after individual components of the system. For example, producers, suppliers , distributers amd consumers that form various components of the system have no coordination with each other . Each of these is concerned about their own business. With the incorporation of decentralised system all of these will come under a single banner and therefore it will be easy for every one of them to track each other activities and any modification required can be carried out in real time. So it fosters a sense of integrity in the system.

Health sector

Maintaining patient health records is always a tedious tas for patients. With the use of decentralized system, patient records can be maintained on chain and will be accessible for the patients anytime and anywhere. Patients can seek consultation from anywhere in the globe. They do not need to carry records with them as they do now.

Moreover the supply chain system of health sector will also be improved as mentioned above.

Poltics

Rigging of elections is common and we arel all hearing this news day in and day out throughout the globe. I think with the incorporation of decentralised system
there will be transparent system of electing representatives because the chances of hacking the decentralised system unlike our electronic voting machines and ballot boxes is not possible. Moreover infinite resources consumed on elections will be saved in addition to time.

Conclusion

Decentralized system because of its numerous advantages has a great scope of being adopted in the every field of life. It would definitely revolutionize the system and we will witness a dramatic change in our day to day life. With certain exceptions,
decentralized system is the perfect example of the system that is need of the hour.

Thank you