Crypto Academy Season 3 Beginners' course - Task 2: @yousafharoonkhan by @hibbanoor

Hello to all the steemians. I am @hibbanoor and this is my first post in @steemitcryptoacademy. A very special thanks to the respected @yousafharoonkhan for sharing such informative lecture in such an easy way. I am going to write my this week home so let's start.

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)

Define Decentralization

A system which have no central authority is known as decentralized system. The data is not stored in decentralized system in a central computer(server computer) but stored on the multiple computer throughout the network. The dealing are done between the users directly without having a third party. The system is not own by any person. The users actually are the owners. The more authorization and power is given to the users. There is not a main headquarter and office for the decentralized system. The users are free to talk about their ideas. They can even share their thoughts that where to bring change in system. They have more authority over their personal information. They run the application without fear of being block any time without any reason. As information is stored on the multiple computer across the network ( not only on the server computer just like centralized system) so decentralized system cannot be hacked.

Example

Steemit is a decentralized app. Here the users are free to share their thoughts and views about the platform functionality. No one is bound here to express their feeling. The user can write the post about any topic. The more power is given to user. No one can block the user without any specific reason and without giving him the warnings. The users earn here by creating the post on any topic.

To clear the concept of decentralized system, we need to know what the centralized system is. In centralized system, as it's name specify, the data is stored centrally. There is always a main authority who control the whole system. This central party have the more power over the system rather than users. The system is own by a single person or a group. This central person run the whole system by his own. He make the rules and all the users have to follow them. A ready made platform is available to users and they use it without having any authority. That central person even have access to the personal information of user. He can block the user from the platform any time as he has the complete authority and he is owner so no one can ask him the reason. The user is always bound in centralized system.

Example

Youtube is centralized application. A platform is given to user. User can only watch the video and post the video. They do not have any authority to express their ideas and thoughts about what changes should bring to this app. Their is a central authority which can block any user. The rules are set by the central party and user use the youtube app by following those rules. The central party can even chnage the youtube and there is no one to ask the reason.

Decentralized System characteristics	Description
User have more power	The more power and authority in decentralized system is given to the user.
No central authority	The decenralized systems are not own by anyone. There is no central authorization. The users are actually the main assets and owner of the system too.
Open source	The decentralized system are open sourced but centralized system are not open sourced.
More secure	The user have the main power on the decentralized system. There is no central party to access the user's p[ersonal information so the security increase in decentralized system.

Decentralized system are easy to use. The registration process is very simple and easy. Just like steemit, register yourself, create the content and start earning.

Simple registration process

Describe the advantages and disadvantages of a decentralized system.

There are mnay benefits of using the decentralized system. You are free to express your thoughts and ideas. No bound and limits. You can earn as much money as you want by working hard and by being creative. You get to learn many things in such systems. Some major benefits of the decentralized system are as follow.

Advantages

Hard to hack: In centralized system, the data is stored at the server computer centrally. So it can be hacked. But As the data is stored on the multiple computers across the network in decentralized system, so it is not possible to hack the system.

No middle man: There is no central party in decentralized system. The users are real assets and owner of the system. They are free to express their ideas on system without any fear.

Open source: Decentralized system are open source. Nothing keep hide on the network. All the activities are transparent so not easily can make a fraud on the decentralized system

Users are not blocked: There is freedom of expression of thoughts in decentralized system. No bound on the topic you can talk. No one can block the users for expressing his thoughts related to any topic on this system.

Easy to use: The decentralized system are very easy to use. The registration process is very easy and simple. Just after getting yourself registered, you can start working and earning money. You do not need to reach the specific criteria to earn money.

More secure: The users have full authority to thier personal information. The user's data keep confidential and no central party is their to access the data. So it is more secure.

Disadvantages

No doubt that the decentralized system are the best and have many benefits for the users, but like any other system, there are some disadvantages of the decentralized system too. The following are some majors.

Transparent: All the activities and transactions are visible to all the people on the network. Any one can see your transaction history and your wallet at any time without informing you.

Lost of master password: The user have to be very carefull for his master password. Because if you lost your master password, you would lose all your work and money which you had in your account. You cannot get the master password back if you have not keep backup of that.

High consumption of energy: Much energy is consumed while maintenance ofsystem

Expensive: The decentralized syetem require very expensive instruments for maintenance of system.

Immutable: If you have transfer your money to the wrong address, there is no way to get them back. This mean that you have lost your money permanently. Wrong transactions cannot be changed. You are responsible for all your wrong decisions and activities. You cannot ask anyone for help as their is no central authority.

Fraud activities: As the users are free to transfer money to any user, so fraud activities may took place. Any person can transfer money to any criminal for any illegal activity.

Advantages	Disadvantages
Decentralized system are Open source. All the activities are transparent so not easily can make a fraud on the decentralized system.	Loss of master key is result in lose of all your work and money which you had in your account.
The user have more power and authority	All the activities are visible to all the users accross the network. Anyone can see your history and wallet at any time.
User have more control over his personal information (rather than central party in centralized system) so his private information remain secure.	As more power is given to the user so user have to be experienced. There is no central party to backup your data in case of lose. So user himself should be trained and must have experience working on the decentralized system.
Information is scattered across the network so if the data is lost from one computer, it can be get from any other computer as it is save in all the computer.	It is not possible to recover the keys if you lost it.

No middle man	If you make the wrong transaction, you lost your money forever. There is no chance to get it back.
Easy and simple registration process.	The users are free to make the transactions. There is no bound. So the decentralized system may be used by the fraud person to perform illegal transaction
No one can block the user without any specific reason. The warnings are first generate if user do something wrong.	High consumption of energy
The user have full authority to express his ideas on how to run the system and which changes are require for better performance.	The decentralized platform are more expensive as compare to the centralized system.

In what areas of life can a decentralized blockchain be helpful? (write in own words)

We cannot deny the importance of decentralized system in our daily life. The decentralized system is being used in many organization. Such important usage of decentralized system are as follow.

Banking : In banks, the manual transactions take much time. You have to wait for hours in que for your turn. This process is very slow. But implementation of blockchain system (decentralized) in banks will speed up the transaction process. The banks will perform their task more efficiently and fastly(bitcoin perform 7 whether ethereum perform 15 transactions per second). As all the transaction on decentralized system are visible to all the users, so the illegal transactions will be reduced by apply the decentralized blockchain system in banks.

Education sector: By implementing the decentralized blockchain system in education sectors, the education system will become more fast and advanced. As this is the lockdown period throughout the work and education is delivering through the online systems, so by adopting the decentralized blockchain system, the communication with student become more fast and the copyright act will be more secure. The information sharing process will be more speedy in easy well.

Health system: Whenever a patient visit the hospital, his whole record is entered on the hospital record system. If next time he visit another hospital, his whole record will be entered in that hospital again. But if we apply the decentralized blockchain system in health care, this problem can be solved. The data is stored only once and visible to all. No need to enter the data again and again. The data is stored only once. All the hospitals can access the data from there. It will consume the less storage then.

Election system: By apply the decentralized blockchain system in voting system, many problem can be solved. In our country(Pakistan), when a party lose the election, he blamed that the corruption held in voting system. Much time is taken in counting the votes too. If we implement the decentralized blockchain in voting system, all these problem will be solved. No party will then be able to claim of corruption. The counting will be held in a very short time.

No central authority: Many organization have adopted the idea of cutting the central party in running the business. Such as real Estate. Such companies work without having central party. Transactions and dealings are done between Two users without having third party.

Conclusion

The decentralized system is bringing the easiness in our lives. There is no need of middle party in such system. The decentralized system are reducing the illegal transactions. The decentralized system will change our world in positive way and will make it more fast, more secure and more modern. It is being used in many systems and is going to be used in further field too. Soon in future, the world will turned toward more progressive way by adopting the decentralized system. Many thanks to @yousafharoonkhan and @reminiscence01