Hello everyone,

Hope so well for all of you. Fiaz here with my user name @fiaznawaz. First of all i want to say thanks to professor @yousafharoonkhan for his excellent lecture. Owing to which i am able to accomplish my task. Today i am going to explain question no. 02.

Question: 02

Define decentralization.
Describe the advantages and disadvantages of a decentralized system.
In what areas of life can a decentralized block chain be helpful? (Write in own words)

Decentralization:

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According to Google’s definition,
it is defined as
"The transfer of control of activities to many local authorities instead of one single power"
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In decentralization every user is given the authority in decision making. Users are free to do the decision according to their own will. In decentralization system there is no a single authority, but, every user is connected under decentralization system to do the decisions according to their own choices.

Business like Business in hotels, supermarket and dress showrooms include the decentralized system. Because, it is not even possible for a single person to hold the record of hundreds of branches throughout the world. If we take example of any hotel, then local hotel managers are empowered to make the decisions on the spot in order to handle the problems.

If we try to understand the above definition in simple terms, it means to devolve power to the lower level and to empower and enable everyone who is associated with any decentralized system. That he/she can work in the system with full authority and not to give all the control in the hands of a single person.

Another example of this system is the Decentralized exchange used in Crypto World.
It is the platform where different peoples interact though buying and selling activities process.

Below are Decentralized Exchanges

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Centralized versus Decontrolled applications:

Decentralized applications are more secure and valid than centralized applications. Because in centralized applications, like Twitter, the data can be accessed through system and system can change the data according to their own senses. But in decentralized application this is not approachable.

This application is known as the future uphold application due to its worth. This contains a unique and proper system, and is comparable to all the applications which we are using these days. That’s why these are known as “Decentralized apps”.

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Characteristics of Decentralization:

• Freedom of expression:

In a decentralized system, everyone enjoys freedom of expression. Thus, it was found that decentralized is a system in which every person working is empowered in his or her work and everyone from top to bottom is free in their decisions.

• Peer-to-peer system:

DApps use another system considered as peer-to-peer system. Which means that there is no proper institution holding it’. But, users’ play crucial role in the development and running all the applications without any authority.

• Open source:

DApps use the system of open source. It is very important system in which no one can manipulate anyone because all the data is recorded which may be accessed by anyone.

Advantages:

• Transactions are recorded:
  Centralized Apps are under controlled by humans, while the DApps records all the transection’s digitally, which don’t need any assistance of human beings.

• Data cannot be stolen:
  DApps cannot steal data. DApps uses open source system which means that data cannot be steeled because everything is clear and be exposed to everyone and all users may have access to it. The data in the DApps are more secure as they run on a block chain network. Even though a single node is hijacked the security of the user data is not affected. Once the information is added to the block chain it is stored permanently. So there will not be any data loss once published.

• Fast dealing:
  While using crypto token in Decentralized application take very short time as compared to transaction in bank accounts. Through these Apps you can save your time which is attracting the people. So, this promotes the application to the people.

• Develop the atmosphere of competition:
  Decentralization creates the competition among all the sub units and this helps to boost the growth of an organization. It allows all the different sub units to exercise their power. So, they become able to develop the leadership and decision making skills.

• Decentralization distributes the work at lower level:
  In Decentralization, decisions are made at lower level. In this sense the Burden on the management at higher lever diminishes. Because, if all the decisions are made by higher authorities then it would become very tough to control the whole management at broader level. In this way, when decisions are made at lower level then work is to be distributed. No one feels the Burden.

• Give motivation:
  Decentralization breaks the larger units into parts. It allows the decision making process to smaller units. In this way, these smaller units are being motivated by making best decisions.

Disadvantages:

• Securities issues:
  Hackers may have approach block chain in following scenarios. During the process of creation of block chain there may be some security issues due to errors found while creating the account. At that time the hackers can approach in illegal manners and may steal the data.
  Unfortunately, the bogus activity in block chain cannot be altered. So, hackers can steal data without being detected. At the time of trading on crypto currency the hackers can approach while on exchange the currencies due to security issues.

• Cost of decentralization is not effective:
  It needs a lot of money to establish the whole system of Decentralization in new era. Because it requires the labor force as well as the new instruments which requires a lot of money. So, this is not cost effective.

• Lack of skilled labor:
  A lot of people get involved in the system. So, sometimes power is distributed in the hands of unskilled professionals. There is lack of skilled labor and qualifies personnel’s according to the demand.

In what area of life Decentralized block chain may be helpful?

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Globalized world is moving towards online business. In this way, name of Decentralization cannot be forgotten.
Decentralization block chain is helping is world by making an easy and efficient transactions. There are many areas where Decentralization block chain is improving our life:

• Health Sector:

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Health sector is the main sector among-st all. Health sector can be improved by decentralized system. In Decentralization system there is a complete network where the whole data of parent’s, their diseases and related doctors are easily available and safe.

Because peoples from different cities are undergoing treatment and consult the doctor. At that time data can be stored. One can consult the doctor by sitting at home places. All doctors of the globalized world can acknowledge the whole record of patient’s data.

• Development of trust between retailer companies and consumers:

With the passage of time the trust between retailer companies and consumers is going to be diminishing due to selling of fake products. But, with the decentralized Block chain technology, Retail Company keep an eye over products from manufacturing point to customers. Customers are given access to information from their products at every stage of movement.

• Land revenue:
  Land record is also very important sector. All the land records can be stored in Decentralized block chain. There are many chances of corruption in land record system. Many fraudulent elements keep the human beings frightened due to corruption.
  But, in the decentralization whole recorded is safe. The land of poor peoples may be seized due to the higher authorities. Higher authorities help the rich personalities by producing fraud documents. Only the solution is to improve the whole setup through decentralized block chain system.

Conclusion:

It is evident from the whole discussion that Decentralization would surpass the centralized applications in future with in no time. It has evolved the globalized world through its proper and efficient features.
With the passage of time world is moving towards online system. Development of block chain technology is changing the world.
Finally, I am very thankful to professor @yousafharoonkhan for his outstanding lecture. I am able to have full grip over the topic due to professor’s excellent lecture delivering method.

Regards:

@fiaznawaz