BLOCKCHAIN, DECENTRALIZATION, BLOCK EXPLORER | STEEMIT CRYPTO ACADEMY SEASON 4 | HOMEWORK POST FOR TASK 4

When we Say something is DECENTRALIZED, it means it is not being controlled by a single entity or organization OR group , decentralization is a concept that aims at transferring and dispersing power away from a central point to different units/nodes/parts/servers. The opposite side of decentralization is centralization, in centralization, there is a center authority who is in full control of all operations and activities within the system. Some systems that make use of the centralized system are the governmental system and the financial systems while the system of decentralization has been adopted and implemented in the blockchain technology, Decentralized Exchange (DEX), Decentralized Apps (DAPPs), Decentralized Finance (DeFi). Decentralization is a global concept that has been widely accepted as it disseminate information and power across multiple facets hereby proferring less risk compared to centralization where any Crack or breakdown in the whole network can lead to an adverse effect on the whole network connected to the central system. However, it is to be noted that a decentralized system helps to minimize or eradicate almost all human error/involvements in its operations, hereby leading to an increase in efficiency. Now, let me talk briefly on features of a decentralized system.

1. A Decentralized System is usually transparent

2. Decentralization has multiple central units/servers

3. Decentralization makes use of peer-to-peer (p2p) system.

4. Each units/members are usually responsible for their own decisions and functionality.

5. Decentralized systems makes use of Components such as nodes (computer, mobile, cases, wifi), servers and units

6. The final behavior of the system is the aggregate of the decisions of the individual members.

Now, I will like to use Bitcoin as an illustration because it is the most popular case study of a decentralized system. It is good to know that no single authority/organization own the Bitcoin network. The Bitcoin network is an aggregate of all nodes and unit, this units interacts with one another for maintaining the amount of Bitcoin every user has.

Decentralization is not a panacea, hence it also has it's own flaws despite the huge benefit

QUICK DECISION MAKINGIf the system is decentralized i.e each units/nodes/members are saddled with the responsibility to take individual decisions, it brings about prompt and quick decision making since decisions do not have to be taken by any central power.

REDUCES THE BURDEN ON CENTER AUTHORITYSince the responsibilities are diversified under the decentralized system, there is less burden on the center authority or top hierarchy. This gives the top hierarchy more time to concentrate on other functions.

TRANSPARENCYIn a decentralized system, every activities or transactions that takes place is usually transparent, no single entity is saddled with the responsibility of performing all tasks as they are usually diversified, transactions especially on the blockchain are usually secure, private and efficient as anyone can view its code.

---

DISADVANTAGES

---

• Decentralization normally involves high cost of running or setting up hence it is not suitable for small systems because of the financial burden

• It is more difficult to achieve a collective task because every units/nodes/computers operates on its own accord or order

• Under the decentralized system, it is hard to follow a standardized policy because each unit manager develops his own policy to follow, this can bring about problem of coordination especially in organizations that uses this system

If there is any facet of life that stands to benefit hugely from the implementation of decentralization of blockchain, it has to be the banking and finance sector. A lot of things can be changed in the banking sector like time to process payments, sometimes it takes banks days to process some transactions but if they implement decentralized blockchain, transactions can be process in few mins, also transactions can be carried out 24/7 even on holidays and weekend with the use of decentralized blockchain, not only that, issues like hacking of accounts will be a thing of the past as the decentralized blockchain is fully secured and safer

The Healthcare sector can also benefit immensely from the use of decentralized blockchain technology. There are a lot of patient's medical record that needs to be properly kept secured and private from the public, all this records can be encrypted and stored on the blockchain, such that only individuals with the private keys can have access to it, this ensures privacy of patients and gives them more confidence that they are in safe hands.