Blockchain, Decentralization, Block explorer- Steem Crypto Academy Season 4- Homework Post for Task 4

Good day everyone, Hope everyone is doing fine. I am here to give a post on the Homework Post 4 titled "Blockchain, Decentralization, Block explorer" I will like to appreciate @yousafharoonkhan for this wonderful opportunity and the steem community.

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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)

Define decentralization

According to the Merriam-Webster dictionary, decentralization is the

"dispersion or distribution of functions and powers". In relating it to government, it further described it as the delegation of power from a central authority to regional and local authorities.
Merriam-Webster

It is a word very much related to centralization. In centralization, functions or powers are delegated by a few persons or in some cases, a single authority.

Source

When used in organization and management, it emphasizes actions and tasks taken by workers or personnel must be approved by a higher authority. In centralization, there's what we call hierarchical flow of functions or power.
The the implications of centralization is that firstly, making of decisions is meant for the highest authority. These decisions are passed to the next level and finally to the lowest level in such organization.
This pattern of decision making is what is mostly found in most sole proprietorship and partnership in which key decisions are reserved for the owners whose instructions are passed to the workers for strict and supervised implementation.

On the other hand, decentralization is quite the opposite. Decision making is not left only to the top level echelon of the organization but is delegated to every level. only those functions that can only be exercised at the central point are left undelegated.

A better and encompassing definition given by Earl P. Strong defined decentralization to

"mean the division if a group of functions and activities into relatively autonomous units with overall authority and responsibility for their operations"- Earl P. Strong.

In relating it to the world of cryptocurrency, it refers to a certain system in which users if the system has the capacity act and make decisions on their own without the need to take orders from a central or higher authority. It functions in such a way that every user if such system are interconnected and are free to make decisions. An obvious feature if a decentralized system is the absence of a central authority who gives order.
Unlike in most network that possess a central server to which all other servers are connected, the decentralized make use of many computers that are interconnected too however, each computer functions as a separate sever such that there is no central server.
The functioning of a decentralized system relies heavily on the interconnectedness of these computer system such that each function as a node.
Since each computer function as a server, all users have control over their data. Transactions carried out in such system are between two parties and as such referred to as peer-to-peer transactions.
There is no third party or central authority in such dealings.
Thus, this systems makes it highly impossible to manipulate what is found in the system.

Describe the advantages and disadvantages of a decentralized system

Advantages of decentralized system

Decentralization tends to have many advantages when applied in various fields. These advantages include:

1. The absence of third party in a decentralized system especially when used in the cryptocurrency world leads to low transaction fees charged on the transaction carried out. Unlike conventional banking system which is highly regulated(transaction between two parties is witnessed by a third party which is the bank). As a result higher transaction fees are charged.
2. A decentralized system significantly reduces fraudulent activities since the users are well secured and manipulation is impossible. In other words, it emphasizes transparency.
3. The timeframe in which transactions are carried out between users is considerably reduced. This further increases the system's efficiency. Transactions are completed very fast to any part of the world. It is a convenient and reliable system.
4. Decentralized blockchain systems are also highly secure system that significantly reduces hackers that may want to penetrate such system. Thus keeping users data protected .
5. The absence of a regulatory structure in a decentralized system especially the cryptocurrency world is also seen as a benefit as it allows for freedom since third party handlers are absent.
6. Decentralized system also eases the rate of information changes between countries and between and within different fields. Thus the bureaucracy, processes and paper work involved before information can be gotten is considerably reduced or eliminated altogether.
7. A decentralized system also give a platform for traders and investors to express themselves in terms of trading with their money. In this system, traders are free to trade whenever they like and with whoever they like with their money and make their decisions.
8. The system is also very efficient. The efficiency of the decentralized system lies in the independence each or everyone has in carrying out their duties. The role of the central authority is considerably reduced or eliminated.

Disadvantages of decentralization.

Decentralization also tends to have some demerits when used. These disadvantages include:

1. In a decentralized system, the absence of a regulatory framework in governing the activities of the system and offer assistance where possible can encourage fraudulent activities.
2. Decentralization is quite expensive system considering resources needed to build such system and man power or skilled personnel required to effectively run such system.
3. The anonymity inherent in the decentralized system can promote fund misuse in that since all personnel are independent, movement of money can occur in an unauthorized manner. This system his can harbor and encourage criminal activities.
4. The effectiveness of decentralization is amplified by the use of competent, well trained and qualified personnel which can considerably add to he cost of running such system.
5. Lastly, decentralization can promote lack of coordination as each unit operation independently.

In what areas of life can a decentralized blockchain be helpful? (write in own words)

The application of decentralized blockchain seem to be endless. It's early application stems from the cryptocurrency and banking sector.
However, with each passing day, various sectors such as transportation, law, waste management, entertainment, supply chain, education, gaming and many more are delving into this amazing technology.

Source

Education

With blockchain technology, educational institutions at all levels can make verification of results, application for transcripts etc. easier and timely.

Election

With blockchain technology, exercising one's franchise can be more comfortable and more transparent. The high security involved in such system can make it impossible to alter vote counts. Using a decentralized system can thus reduce election rigging and other sharp practises.

Food industry

The tracking of food material from where they are produced to the various stores where they are sold has been greatly enhanced by the blockchain technology. It is fascinating that one can now trace food materials from the point of their origin up to when they get to the final destination. This thus bring a sense of security knowing fully well what one is eating. In other words, it help in knowing the footprint of food item.

Real estate

With blockchain, the use of paper can be faced out. The processes and ambiguity involved purchasing and selling property is greatly reduced. In place of using paper, title to a property can be easily transferred or received through blockchain network thus bringing about a transparent process.

Supply chain and logistics

Blockchain technology due to it's peculiarity can be used in the field of supply chain especially in good tracking from their source to their destination.

Health care sector

It is relevant in the health care where information involving medical history, immunization program etc especially in this covid 19 pandemic are quite importance. This can give prompt and reliable data in the case of emergency.

Insurance

Through the use of smart contract blockchain chain technology can be applied in insurance. With this, customers and insurer can manage claim in a more transparent way. This is done by storing contract on a blockchain and validated whenever the need arises.

Energy sector

The technology can also be applied in the energy sector in order to carry out prompt supply transactions. It's application in the area of billing and embracing renewable energy is also a good area.

Government

Blockchain technology is particularly of great importance in record management, identification management and creating database, voting , taxes and other area.

Other areas of application where decentralized technology look promising include; waste management, entertainment, gaming, public transportation, law , construction, agriculture e among others.

Conclusion

Decentralization as a concept emphasizes distribution of functions and powers. It is a concept that comes with several advantages such as efficiency, autonomy, reliability, freedom to mention but a few. Though it has disadvantages, it's advantages however far overshadow the disadvantages. It has found it's application in almost all field of work ranging from law, insurance, education, entertainment supply chain, energy , health care.

I hope I have been able to answer all questions asked effectively.
Thank you once again @yousafharoonkhan for the opportunity to gain more knowledge this time.