Crypto Academy Beginner's Course Task 4: Blockchain, Decentralization, Block Explorer
Define Decentralization, Describe The Advantages And Disadvantages Of A Decentralized System, In What Areas Of Life Can A Decentralized Blockchain Be Helpful(Write In Your Own Words)
Define Decentralization
Decentralization basically means the transfer of administrative power from the central authority to individuals. In a decentralized system decision making about the running of the company is spread evenly and not held by a single entity like in a centralised system.
Unlike in a centralised system where all the decision making lies with the top management. It is quite different from a decentralized system where the decision making is being delegated even to the lower level management who have a say in the running of the establishment, who does not just follow laid down rules from the CEO but have a say or play a part in what is being done in the running of the establishment.
In a decentralized system there is an distribution of workloads from the top management to the lower management of the firm. The opnions of the lower level management are taken into account before a major decision that affects the running of the institutions are taken. But a centralised system as we all know is quite different and quite the opposite.
In a centralised system information are connected or stored in a centralised server which if hacked all the information of the members in that system we be exposed leaving them in a vulnerable state. Decentralized system does not operate in like manner rather in a decentralized system distributed through multiple servers of users computers around the globe making it difficult to access all at the same time and more secure than a centralised system.
A decentralized system or blockchain carefully eliminate the need of any Intermidiaries whatsoever and helps us to be able to have a real connection with each user hence aiding in the smooth and and efficient running of any institution and create real connection between the members of a decentralized system.
Advantages Of Decentralized Blockchain
A decentralized blockchain/system comes with many merits some of which are listed below
1.It creates a direct line of communication between it's various users
2.Reduces the stress of having to go through the middle man before accomplishing a task
3.The fact that the opnions of the lower level management are welcomed it ensures that it various users plays a part in the decision making of the institutions there by leaving everyone happy and satisfied with any agreement reached.
4. Offers more security to it's users in that information and data's are not stored in a central server thereby making it almost impossible for hackers to attack.
5. Another merit of a decentralized system is the fact that it offers it's members a certain degree of privacy that can't be guaranteed in a centralised system.
Disadvantages Of A Decentralized Blockchain/System
A decentralized system also comes with some disadvantage and i have taken time to highlight some of them below.
1. For all the notable benefits of a decentralized system it is very slow in decision making when compared to a centralised system because of having to take into consideration the opinions of even the lower level management
2. Another dismerits of decentralization is that small scale business will find it hard to operate in this system due to the fact that it does require high cost of running and maintenance
3.There is hardly any uniformity in any agreed decision of the establishment since each member has freedom to do so
4. Also the decentralized system often leads to each department being self-centered thereby ignoring the broader interests of the other departments and that of the entire firm
5.Since there is departmentalization it is kind of harder to accomplish a tighter financial risk control and properly manage
Where Decentralization Could Easily Be Applied
The Educational Sector:
The educational system is one level where i believe could make use of a decentralized system. The system being decentralised could help in the efficiency of the educational system. I strongly believe that decentralisation application in the education system will help improve it in general and makes work easier and a be a reliable place of learning.
In a decentralised educational system the data of the student are not liable to easily being lost as it is stored away on different computer nodes which could be assessed at any time and if for any reason in the future information is needed about a student maybe due to legal reason or inquiries are made about any student his/her information could be easily assessed.
Today atleast in my locality from what is attainable in this centralised private educational system most times after a student comes back to the school after many years maybe he hasn't been able to do so due to since due to challenges to get his qualifications and some result we often find out that in some cases the school have lost or is no longer able to provide the proper documents of this students probably because it has being misplaced since it has been long or the system where it was stored has crashed or for some other reasons whatever be that case the school is unable to find his details.
Now in a decentralized educational system this issue could easily be averted and no matter how long it takes or from anywhere at all the school will always be able to access the information of her pupils and the decentralisation ensures for the safe keeping of this data's.
A decentralized educational system would also go a long way to curb the level of corruption that is prevalent in our education system today and ensure that that data's about a student are unchangeable by manipulators with nefarious purpose and ensure for the perfect running of the our educational system where the level of corruption we see today will be reduced to non or very minimal level.
In all applying decentralization in the area of education will help to guarantee the safety of the students information and reduce levels of corruption this i believe.
Political Sector:
Another system where i believe could really make use of the application of decentralization is the political system.
Truth be told never has there been a place or a sector that needs this than this system. It is the system that are leaders and in control of the nation and as such there should be a certain amount of accountability but today the reverse is the case. We see a situation where millions and billions are squandered by those in politics but because of lack of proof and record the case is being abandoned.
There is hardly any transparency in our political systems, i don't know for other countries but in my country with a certain degree of confidence feels that the implementation of decentralization would go a long way in curbing the high level of corruption and instability. When data's of every transactions could easily be assessed at any time, records of any deals are easily available it would make it somewhat difficult, almost impossible for corrupt politicians to steal public funds.
Also the decentralized political system would go a long way in ensuring there is a smooth running of election and making it hard for result to be hardly rigged as it common today. It will make sure to keep proper data's and also ensure that the number of votes is not more than that of registered voters, this things are easily manipulated in my countries of the world mine included.
In all i believe the application of decentralization in the political system would ensure a free and fair election and also make sure there is proper checks and balances for those in office since the data's are always there in the system for all to see.
Banking Sector:
The banking system is also another notable sector that really needs the application of a decentralized system it is ofcourse after all where the wealth of the nation is kept for safe keeping and in charge of the personal information and data's of the masses.
Today the bank is a place where we keep our valuables hence it is of utmost importance that our informations and data's are properly secured. Today it is true that the banks is one of the heavily protected places but truth be told time and time again robbers often make their way through banking establishment and damage or steal customers vital credentials and documents as well as other valuables which will leave the bank in a lots of mess as often times when this system are damaged with hard drives and hard copies are damaged as well it could often lead to lost of important files which is what we see in the centralised banking systems today.
If decentralisation is being applied to the banking sector it would go a long way in ensuring that our valuables are not easily messed with in case of robbery any files lost could easily be recovered with immediate alacrity thereby preventing much damage.
Also if our banks today are hacked fraudsters are able to steal millions of funds of its customers which could easily be avoided if a decentralised was implemented in the system which would make it impossible for hackers to breach or have it as easy because the personal datas and information won't be stored in a central server at a particular location like what is common today.
So in all a decentralized banking system ensures and gurantees the safety and security of its customers information and valuables and help for orderly running of the banking system.
Conclusion
In all i really believe that decentralization is good in general, it is true is not without it's cons but the benefits i feel greatly outweighs the dismerits and a good implementation for any sector. It will be a step in the right direction for any establishment.
Decentralisation actually solves so many gaps or loop holes created by the centralised system and as such i feel it is a far better system to operate on since it offers more security and ensure privacy while offering efficiency as well.