Question:

(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)

What is Decentralization

This is frequently asked a question that what is the meaning of decentralization. According to my knowledge and information, the word De meaning is not and the word centralization meaning is the existence of one thing with its center or derivation.

Its understood meaning is the existence of anything without its central point or organization. And same in the world of cryptocurrencies the word decentralization means is the existence of anyhow currency without any particular organization and particular control of any person.

According to this rule, all cryptocurrencies do not base on one organization and any particular person. Any particular organization and person did not control the framework of cryptocurrencies.

The member of this blockchain has its own ability to take any of decisions and there are no rules and principles are applied to the member of any decentralization blockchain. A member can utilize this profile with his own decisions. Every member has the right to make his own decisions and there is no particular organization is there for the supervision of the member of blockchain which checks out every minute activity of the member. So, here member has the complete right to take his own decisions.

There is no single owner of any decentralization which control all the system panel. So here is a conclusion that who controls and plays to the decentralization app? Ans. is, the members which used decentralization are the owner of decentralization so every member is an owner of decentralization and there is no particular owner. Its blockchains are controlled by some particular persons and computer systems from different regions from the words which are a worker on dApps.

So, everyone could independently take decisions on dApp.

What are the advantages of this system?

It has a lot of advantages as:

• It provides quick decisions making to members.
• This system is safe and secure because the consumer is the controller of his own system and the consumer has complete control over his own data.
• No one is able to control and re-edit the data of any consumer. Only consumers can change and edit their data. So, this is completely secure from hackers.
• dApp has its own private and most strong and secure system which protects the data of the consumer.
  • One of the most useful features of dApp is that consumers can transact any transaction without permission of any authority in any corner of the world using the fastest method.
• users can work together in the dApp so they can work together with higher potential and determination.
• everyone can make progress to his system to get more rewards and here right use gives progress to the people.
• There are almost 0% chances of hacking because this system is controlled by the most powerful algorithms and most powerful security blockchains.

Disadvantages of Decentralization System

• It requires high-cost systems to work out functions.
• Volatility is another one of the most important disadvantages of this system and sometimes it could be badly damaged financially to any user.
• One of the most notable disadvantages of this system is that it does not involve any central organization and the transaction record has a receiver and sender. So, any spammer and criminal could be hired and illegal money could be transferred without government permission.
• The transactions are not much efficient than the centralization system.
• In the case of loss and spam, consumers could not blame anyone and could not apply for any legal proceeding.

A decentralization system could help us to improve life in many areas and fields because it could be used as data storage for a long time and data could be reviewed any place and any time in the world.
In such fields of life, this data could improve our lives.

Banking Transection and Record Saving

As we know that after introducing the decentralization system, the banking system has become the fastest system to transect money and save all the records of transactions. It could be used to save any data about banking with high security and with the fastest communicated source. This could remove complexities from the traditional banking system because this overtakes a long process of money transaction and uses simple and fastest way of transection and saving end to end encrypted the transections records. By choosing decentralization we can overcome the complexities of a centralized system as I've explained. It could prove our transection system because it uses minimum taxes to transfer money.

Online banking transection

Before introducing decentralization, the transaction of money was not easy from one region to another country and city. Aft4er introducing decentralization system it has become so easy and now these days we can improve it. If it is connected directly to the earning sites and apps then it could be more useful for us.

Medical Sector

This is also one of the most important areas of life and here decentralization could be proven to improve our medical record could be safe in a decentralization system that the related person and patients could receive information about the diseases in any corner of the world. This may improve secrete research of harmful diseases and other scientific researchers.

Politics

In politics, decentralization could use as data storage and it could be also useful to review the price of products which will help politicians to investigate deeply to governmental system.

Same, decentralization system could help us to improve a lot of ears of our daily lives and there are a lot of examples where this system could make fastest and easy to our lives.

Conclusion

After preparing and reviewing this blog I come to the conclusion that the positive use of the decentralization system could change our life and we can transact money without extra taxes and govt. permission. This system has a lot of advantages that could solve financial issues. one of the most important functions and features of the decentralization system is control of consumers on their own transactions.

Post By.

@ghiasahmad