Crypto Academy Season 4- Homework post for Task 4 , for prof @yousafharoonkhan : by @gracellagift student
Hello steemians
How are you all doing today? Hope fine and safe.
In my today's blog, I will be doing the homework task for professor @yousafharoonkhan. from his lecture on Blockchain,decentralization,block Explorer. I will be answering question two
Define decentralization
Describe the merit and demerit of a decentralized system
In what area of life can a decentralized system be helpful?
ANSWERS
Key point:
Decentralization is a delegation of duties
A delegation of authorities
and a delegation of diffusions
Decentralization can therefore be define as the division of group of functions and activities into relatively autonomous units
A decentralized Blockchain refers to the transfer of control and decision-making from a centralized entity (individual, group or organization) to a distributed network.
Decentralized networks strive to reduce the level of trust that users must place in one another, and deter their ability to exert authority or control over one another in ways that degrade the functionality of the network.
Decentralization is not a new concept. When building a technology solution, three primary network architectures are typically considered: centralized, distributed, and decentralized. While blockchain technologies often make use of decentralized networks, a blockchain application itself cannot be categorized simply as being decentralized or not. Rather, decentralization is a sliding scale and should be applied to all aspects of a blockchain application. By decentralizing the management of and access to resources in an application, greater and fairer service can be achieved. Decentralization typically has some tradeoffs such as lower transaction throughput, but ideally, the tradeoffs are worth the improved stability and service levels they produce.
A prefect example of a decentralized system is the steemit community where every users have access to grow in steem power to become a whale as long as you have the right attribute to offer to People on the platform also having to group up in different communities.
VS
DECENTRALIZATION
IN
CRYPTOCURRENCY
EXCHANGE
Cryptocurrency exchange play a vital role in the development of Blockchain industry. the reason why investors are panting towards crypto exchange services is because cryptocurrencies are digital and they can not be counterfeited .
- the table below shows the different between centralized and a decentralized crypto exchange
| CENTRALIZED EXC | DECENTRALIZED EXC |
|---|---|
| 1) A centralized exchange operates similar to the banks today: There comes an owner,They are safe, they follow rules and regulations coins which are stored by a third-party service. | 1) blockchain decentralized exchange functions with digital, all the transactions are reviewed and executed by both two parties. |
| 2) A centralized Blockchain is risky in terms of security. the risks associated with the centralized exchange:They can be hacked easily through which funds could be lost. | 2) Decentralized exchange, token owners places the order, In order to exchange his/her assets with another asset available. token owner specifies the number of units, they have to sell, the cost of the token, and until which time bids for their assets is allowed |
AND
DISADVANTAGE
OF A
DECENTRALIZED SYSTEM
- The following are the advantages of decentralized system:
- Quick Decisions: For decision one is not required to reach on the top. Just one can take decision whenever one has to take without wasting time and energy in maintaining the channel. Unnecessary wastage of time energy and money is avoided giving overall better performance.
In Addition, to make quick decisions that can save your company money. By empowering your managers, you trust their instincts and abilities, because you know they understand the daily work process better than you do
2 ) Utilization of available talents: this ensures loyalty and develops team spirit as well. Capability/ productivity is rewarded here and one is given a chance to improve, if someone, somewhere, lacks due to one reason or the other.
In addition, The talents available can be best utilized in decentralized setup as everyone is given an opportunity to prove his worth. Such an opportunity is usually not available in centralized setup.
- The following are the disadvantages of decentralized system:
One of the main disadvantage of a decentralized system is that you lose control over the day-to-day activities of your company
Lack of uniformity: There might be lack of uniformity and inconsistent procedures as each community might have the authority to formulate its own policies and rules.
Coordination Problems: As each community division enjoys substantial autonomy it might lead to coordination problems.
A decentralized system can be helpful in the following ways
A decentralized system promote growth, it helps individuals to grow independently in their work. for example, on steemit the trending most articles now is found in CRYPTOACEADEMY community, every steemit users make amtempts to participate in the given home work tasks by professors to earn a reward. This is however a healthy competition to other communities. Ultimately,the competition will lead to an improvement and enhancement in productivity on the Blockchain.
Development of executive skills: On steemit Blockchain, every user is allow to perform tasks, giving them invaluable exposure.
A decentralized system allows individual performance creates an environment where individual's can enhance their expertise,take ownership and more significant responsibilities.
Cc.
Professor @yousafharoonkhan
Best regards