Steemit Crypto Academy Contest / S1W3 - Blockchain through the concepts by @favourite26

favourite26 (52)Beginner[2]in SteemitCryptoAcademy • 2 years ago

INTRODUCTION

Good day fellow great minds, in this article, I'll be sharing my knowledge on decentralization with you all, why I think it is an important concept in the blockchain, Its relevance in the blockchain, and how to improve it.

MY FAVORITE CONCEPT OR TERM RELATED TO BLOCKCHAIN

The blockchain possesses many concepts and these concepts like decentralization, block, consensus algorithms ( Proof-of-Stake), etc have made blockchain progress in this digital era. However, these concepts possess unique roles and policies which make the network work effectively. In this post, I will focus on decentralisation.

Decentralization In A Blockchain

Decentralization is an antonym of centralization (which is interpreted as a system that is governed by a single body, an organization that manufactures DELL products like a phone charger or computer is a good example.

Decentralization can be interpreted as a system that is not operated or owned by any central or official authority, rather, its coordination, regulation, management and issues concerning the system are dispersed or transferred to numerous middle owners. A Fast-food franchise chain where the obligation of each restaurant in the chain depends on the respective restaurant is a perfect example.

Decentralisation is an area of delegation by which a part of the work in the system is allotted to others spreading to the least level of the organisation. It is secure, cheap or significantly less free.

Unlike a centralized system where your personal information is publicized; in a decentralised system, a user's data and identity are safeguarded and protected. In a decentralized system, the authority to make decisions, and control affairs about the system has been given to different subunits and constituents of the entire system. A User's personal information can not be dug into because a decentralised network functions on a means known as peer-to-peer which authorizes user computers to interact directly, giving no access to any third party or middleman your information, rather than taking you directly to the client.

KEY TAKEAWAY:
The phase of decentralisation can be distinguished by the nature of the power entrusted, how far down in the system or organisation it is delegated and how always it is entrusted. Therefore its level is determined by the authority given.

CHARACTERISTICS OF DECENTRALISED SYSTEM

The following are the qualities of a decentralized system.

Fasteners the rate of decision-making: Since each subunit monitors its affairs, there's no necessity for them to wait for the central authorizing body to make decisions on their behalf, it could be because they take a long time to come up with decisions that they think would be the best for the whole organisation.

Meanwhile, In decentralization, each department oversees its affairs, and they need not go through the risky process of considering the entire system to make adjustable decisions.

It supports divergence of power and permission to individuals: This means that each partaker, subunit, etc has discretion over their affairs giving nobody or any particular person that authority. This is the genuine meaning of decentralisation.
Increased level of accountability in members: Decentralization results in each subunit or participant in the system being totally credible and accountable for every decision they make since they are in control of their affairs.
Encourages enthusiasm of each member: Heretofore a decentralized system compared to a centralised system can make decisions faster, readjust quickly and re-strategize, this would encourage an environment for learning. Inspired participants can attempt new ideas knowing that the network allows them to try new things and quickly change decisions when new ideas confirm unsuccessfully.

In the following paragraph, I will be throwing further ideas on my explanation above which states that the obligation of each restaurant is dependent on DEX (Decentralized Exchange), and a Fast-food franchise chain is an example of decentralization.

Blockchain technology is designed on the foundation of a Decentralized system. DEX is an exchange market in the cryptocurrency world which permits trading in a peer-to-peer system and this procedure isn't controlled by a central authority. In blockchain technology, this means that a blockchain is created in a way that individual users are solely accountable for their activities as no one has control over another's activities.

Therefore, It is advisable that blockchain technology users must be cautious with their operation of the system to avoid irrevocable mistakes.

After being enlightened on Decentralized Exchange (DEX), I'll love to point out the differences between a centralized and a decentralized system.

CENTRALIZED	DECENTRALIZED
An individual or a single authority controls the entire system	Gives license to all users
The Decision-making process is slow and is made by a central authority	Decision-making process is fast and made by its members
Formal contact process	Contact is of any kind
Slower output	Fast in output

Why Do You Think It Is Important In The Blockchain?

In the setting of blockchain, decentralisation is very important. It tends to be the hope of the future and so has a lot of importance below are some of the importance of decentralisation.

With decentralisation in a blockchain, all data is fully displayed with no manipulation, and this can help in transparency. To be honest, there would have been a lot of cases of crime, and embezzlement in the blockchain. Decentralization thereby makes it difficult for crime to take place in the blockchain as well as to speed the transaction rate.

In a blockchain, data or transactions are validated and verified before they can be added to the network. Thus, Different network nodes are entangled and must reach a consensus in the confirmation of transactions, thereby making hacking difficult.

Also, it grants privacy since users of the network are in full control of their assets. This entails there is the elimination of the third parties as such users are in charge of the blockchain. Today, transactions of assets can be executed anywhere and at any convenient time, thereby we can say that decentralisation is what a blockchain is permissionless.

DO YOU THINK THAT THE EXISTENCE OF THE BLOCKCHAIN WOULD BE POSSIBLE WITHOUT THIS CONCEPT? IS THERE AN ALTERNATIVE OR SIMILAR TERM?

Yes, blockchain can exist without the concept of decentralization but the features of decentralisation will be lacking. Remember we have another concept called centralization where users don't have full right to their account, lessening security and privacy. During the implementation of the blockchain, it can either be decentralized or centralised.

Nevertheless, decentralization has its unique features as well as advantages but doesn't control the blockchain generally. It assist and play part in the following ;

Security*: A decentralised system is highly secured and less prone to easy access by hackers or faulty online problems since the whole system is not under any particular control.

*** Decision-making ***: A decentralized system is quite fast in making decisions because ideas from the separate unit need not be sent to the central authority for verification, instead a user has the chance to quickly experiment with their ideas to get quick feedback.
Transparency: Blockchains are ledgers and as such are not open to everyone a lot of miners are involved in the procedure of analyzing transactions but it is difficult to commit fraud because no individual miner is in charge of validating these transactions.
Power is dispersed: There is the equivalence of power, as no member is superior to the other to exercise power.
Enhances Growth of the organisation: Every person can exercise power to expand and manage their resources. This proficiency can be beneficial to the growth of the system. It also creates strong competition in subunits.

Is there an alternative or similar term?

Yes, there is an alternative. A blockchain can operate as a centralised. Although in a centralized blockchain the user doesn't have the power over their account. In a centralized blockchain there is the involvement of a central authority or a third party as such the transaction can easily be controlled and the security is a bit weak unlike a decentralised network, thereby it's prone to hacking.

DO YOU THINK IT IS POSSIBLE TO IMPROVE THIS TERM IN SOME WAY? EXPLAIN TO US HOW

Yes, I think it is possible to improve this term decentralisation.

The anonymous aspect of decentralized blockchain agreements is a big problem and requires improvement. I think 🤔 because of the decentralised nature of blockchain makes some the nations like Nigeria ban or not legalise cryptocurrencies. Honestly, there are a lot of malicious acts as a result of internet fraudsters choosing the decentralized networks in conducting their illicit activities have known that it is traceable. This has led to a high crime rate in the crypto sphere.

Nevertheless, another part of this Anonymous climate of a decentralized blockchain is that once a user mistakenly put the wrong recipient address or good address with the wrong network during the transaction process, it executes as such the asset has been lost and can't be traced or recovered.

So, possible improvements can be obtained by the network forming a better model where transactions can be traced just like in our local banks where it's traceable. Also, establishing an adequate control room where transactions are monitored

The fluctuations of a crypto asset are a big concern in the crypto world today. Generally, all crypto assets constructed on decentralized blockchain face the issue of high volatility. You can see a coin that has a fixed price including the so-called USDT and this is a result of no government in control of the network. Users can rise anytime to buy and sell coins because of the permissionless nature of the decentralisation in the blockchain.
Currently, the volatility of asset price is high in the aspect of supply which has prone to the low value of market prices of coins.

I think there is a possible way to improve this aspect of price volatility by establishing appropriate centralization where regulations are carried out on decentralized blockchain networks to navigate the prices f crypto assets. This means there should be centralised management which becomes the strength of the network. All the plans should be developed and communicated for the guidance and direction of each part of the network.

CONCLUSION

Having looked at decentralization and how it is different from centralization, its advantages and its importance, I'll therefore conclude this article by saying that the execution of decentralized blockchain technology will reduce the rate of wrong activities, corruption (in the world), and it is a great answer to transparency questioning blockchain and will cause active change on the way operations are being done in the world.