Blockchain, Decentralization, Block explorer- Steemit Crypto Academy Season 4 - Homework Post for Task 4
(2) 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)
Answer
Decentralization is a system where no one(individual, group or organization) controls the actions and inactions in terms of decision making. As the name denotes, the system is a shift from a centralized system where users' have the power to take decisions without any restrictions. In such decentralized system, no central authority has the right to pull you down or dictate to you because they do not have oversight responsibility over you. This is more like localize confinement where individuals are entitled to their opinions without being censored or muzzled.
In a centralize system, all user's data is transferred and stored in a centralize database where third parties have the right to restrict, block or allow access to your own personal information. In a decentralize system, there's nothing like a central sever where users' information are stored. Rather, several computers served as the severs that stores users information where no third party can have access to.
Advantages of Decentralized System
It leads to efficiency and flexibility where users' works independently thus, maximizing outputs and gains. In effect, users are able to innovate and come up with strategies that best suit their working environment and conditions since there is not central authority serving as bottle neck.
The system is robust and difficult to be taken down by hackers since data and information is not stored in one central database. Because the system is localize, it is almost impossible to hack and steal users information.
Thy system is democratic and do away with monopolization where few people own and have access to data and resources. The decentralize system de-monopolize wealth and re-distribute it among users instead of few people in the centralize system.
The decentralize system also allows users' to express their will without the fear of reprisal attacks from authorities. This in effect, helps the marginalized to expressed their opinion on issues affecting them be it finance, politics, environment etc.
The system is design to be transparent where corruption secrecy is eliminated or minimized because it can trace and narrow down into specifics where money is spent or disburse.
Disadvantages of Decentralized System
Misuse of funds by users is one demerits of the decentralize system. This is so because, users' are not restricted on when to transfer funds and to whom funds must be transferred and at what time. Thus, the system can used used by money launders and other illicit transactions due to the autonomy of every user.
They system also demands some level of technical competency since wrongful transaction is almost impossible to reverse.
Areas Decentralize Blockchain can be Helpful in Life
Electioneering- Due to the robust nature of the system, it'll be good if Nations and States adopt it as a tool for elections since the system is impossible to temper with, it would be good if it is adopted in other to stop rigging disputes after elections.
Economy- The economies of various States can be diversified through the adoption of decentralization. This would do away with the oversight responsibility of the Central Bank and allow localize transaction where users are the bosses on their own without any restrictions.
Public Sectors- One sector that should see the light of decentralization of the public sector where everything is either centralized or bureaucratic. Government documentations and access to basic thing are service cannot be accessed without bribery and corruption thus, bringing in decentralization would help curtail such nuisance.
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