[Blockchain, Decentralization, Block Explorer] - Steemit Crypto Academy Season 4 - Homework Post for Task 4
INTRODUCTION
I will first explain what a blockchain is for a better understanding.
Blockchain is a digital ledger that is freely available and has been distributed to all the networks on the blockchain platform. It may sound difficult or complex but in simple terms, it is the distribution and storage of data in groups or blocks and are connected together in a form of a series or sequence. This makes sure that the data that has been stored cannot be altered. It is used in cryptocurrency networks for transparent, secured, and quicker transactions of cryptocurrencies on their platforms.
There are two types of blockchains;
• Decentralised blockchain
• Centralized blockchain
DECENTRALISATION
Decentralization is the total carryover of control and the power of decision-making from a single authority which could be a group or an individual to the whole organization evenly. This way, everyone involved has the authority to make decisions and also govern the network. Blockchain networks aim to make sure that trust among the members of the organization is equally distributed so that no one will be capable of imposing any control or authority over another member that will affect how the platform is supposed to work. Users and members have total freedom and are given total control just like every other member and user.
Decentralized networks comprise nodes that can communicate on a peer-to-peer (P2P) or direct basis, this way, data can be validated without the need for any intermediary. Every node has equal power and control and is also independent of each other so data is provided to every single node equally on the network. The nodes do not abide by a central authority, they operate with rules that are agreed upon by the majority of the nodes to keep their privacy and sovereignty intact. An example is the steemit platform.
The opposite of decentralization is centralization , in this system, a single entity or authority has control over the network. Unlike the decentralized network, the centralized network does not give total freedom to its users or members. Members do not have equal opportunities to make decisions and govern the network. Examples are Facebook and Twitter
DESCRIBE THE ADVANTAGE AND DISADVANTAGES OF A DECENTRALIZED SYSTEM
The decentralized system has its benefits and shortfalls, let’s look at some of them.
Advantages
• Every member in the system has the right and freedom to take part in decision-making and can also partake in governing the system. This ensures that no one will be able to exert any form of control over another.
• Data saved in a decentralized system cannot be manipulated by anyone. This makes it very secure for users.
• Users have complete control of their accounts. This implies that transactions can be initialized and executed at the convenience of the user without the need for authorization from a main authority. So, the verification of transactions does not depend on intermediaries but the system makes use of different consensus mechanisms to verify the data
• The chance for Corruption and hacking is minimal. Data and information in a decentralized system are publicly available for everyone to see and it is also impossible to be manipulated or tampered with. This makes hacking and corruption difficult to practice on the platform.
• Users have total freedom on the network. There are little or no restrictions on the activities of users on the network.
Disadvantages
• Individual performance is needed for the system to function. The collective effort of the participants is what runs the system. So, if they are not given enough motivation to perform their duties, the system may fail to function properly.
• It is sometimes risky to perform transactions. Transactions on the system are very convenient, fast and secured. However, due to the fact that data cannot be altered, a mistake such as sending to a wrong address during a transaction may render the funds unretrievable and may lead to cause total loss of funds. Users need to be very careful during a transaction.
• The system is difficult to maintain. Resources of the system are distributed and controlled by the participants or members of the system. This means no one can claim ownership of it and this makes it difficult to maintain.
IN WHAT AREA OF LIFE CAN A DECENTRALIZED BLOCKCHAIN HELP?
• In our education system
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If decentralized blockchain is applied to our education system, we will be able to permanently store the records of students on the decentralized blockchain system. This way, the data will never be lost and will avoid the problem of students losing their certificates. The decentralized blockchain system in schools will allow students who are mostly not part of decision-making to be involved in the decision-making pertaining to their concerns in the school.
• National identification system
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A decentralized blockchain system can be introduced in a country’s identification system to securely store records of citizens. This will help tackle corruption and promote transparency when it comes to elections, censuses and other matters in the country due to the fact that the system is decentralized and the data is available for every citizen to see and it cannot be altered in favor of anyone.
Also, citizens will not have to pass through time-consuming, stressful, and frustrating protocols to verify their data in the system.
• Government
What the people of a country want is to see a transparent and incorrupt government system where they can express themselves freely. A decentralized blockchain system due to its decentralized nature will enable citizens to have a say in decision-making in the country and it will also promote transparency and reduce corruption.
CONCLUSION
In this task, I explained what a decentralized system is, and in summary, it is when the power of control is evenly distributed to every participant or member of a system. Then I explained its advantages and disadvantages. One of its advantages is how it is impossible to alter or manipulate any data stored in it. Then I ended by explaining how a blockchain system can be applied in an area in real life.
My gratitude to Prof @yousafharoonkhan for this task, I learned a lot doing it.