[ SEASON 3 | Intro 2 ] Crypto Academy Beginners' course - Task 2: Blockchain Decentralization
(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)
Hello friends .... !!!
Meet again with me Ichsan Angga P on this Steemit Crypto Academy Homework Season 3.
Today I will finish my homework on Task 2: Blockchain, Decentralization, Block explorer given by professor @yousafharoonkhan
Define The Decentralization System
Blockchain Decentralized Technology is a technology which means that it is not centered on a network or is not tied to an authority, so a decentralized system is a system where each server is connected to each other without a central network. So this decentralization is formed by using a network that adheres to Peer-to-Peer, the goal is to protect each other from one server to another, so if one server has a problem, the server will be automatically backed up by another server.
So to make it easier to understand a decentralized system, I will try to explain a little, which is a decentralized system that is a system that does not have a center on a network, which means all users are part of running a decentralized system, because where all rights are owned by users in the system. In this decentralization, there is no single individual who can manage in this decentralized system, in contrast to the centralized system, which means this system has a centralized meaning, meaning that everything is managed on a centralized network, such as a bank, where this centralized network has a centralized network. government regulated authority.
So the Decentralized system on the Blockchain is a safest system for storing all information, because if an information has been entered into the Blockchain that adheres to a Decentralized system, it is really impossible to hack or even break, because of the high level of security generated from thousands of nodes. which work to make blocks and each of those blocks will bind together like a chain.
Describe the advantages and disadvantages of a decentralized system
So here we will try to review some of the advantages and disadvantages of the Decentralized System, here are the reviews :
Advantages of Decentralization
Security
So because the decentralized system in the blockchain is stored in thousands of devices that work on network nodes that bind to each other, which by using these nodes makes a strong system and also data that is protected very strongly from attacks by hackers or hackers. Because every node on the decentralized Blockchain network can replicate and can store every copy of the database that is owned by each other on each node of the blockchain network, if one node experiences problems, the other nodes in the network will cover or back up the problematic node.Stability
Stability means that if a certain block has carried out its activities and has been confirmed, then it is really impossible or even impossible to fail the activity that has been confirmed in that block, so if a data that has been entered is a ledger of records on the blockchain, then we will not be able to do anything about the data, and this makes it a system with the best technology for storing important financial data, because the level of security provided by Blockchain is very high.No 3rd Person Required
As we know that, with a decentralized system we don't need a central network, or a third person to confirm the transactions we make, because of the use of nodes scattered on each network that will verify transactions that are taking place by way of mining. So by using a decentralized system, this will save enough transaction costs that we do without the need for a third person in charge of verifying our transactions.
Disadvantages of Decentralization
Data Change
The weakness of the decentralized system is that when data is entered into the blockchain ledger, it is impossible to change the data, although this is also an advantage, but it can be a drawback that is also feared, if the slightest mistake data that enters the decentralized network, it is very difficult to edit or change the data.Not efficient
Another drawback is about efficiency, a Blockchain that uses a Proof Of Work system, is really very inefficient. Why is that, because to run the Proof Of Work system it requires mining, and there will only be one winner every 10 minutes once the mining takes place, so if we look at it from an efficiency perspective, then the other miners will waste their work in mining. . So here miners are required to upgrade or increase power in mining, it aims to have a greater chance of finding a valid block hash, so that other miners will also flock to upgrade their computing power, and this is what makes the system inefficient, because it requires a very large consumption of electricity to read the hash of the block.Storage
The next shortcoming is regarding storage, as we know the blockchain ledger continues to grow until it has become so large, at this moment Blockchain on Bitcoin alone requires hundreds of GB of storage space, so this will pose a risk of losing the network of nodes if the ledger is in the blockchain it's already too big in storage. Because if the node is lost then this will automatically be fatal for the users who save it.
In what areas of life can a decentralized blockchain be helpful ?
I think that in the field of Finance it will be very helpful to use this Decentralized Blockchain system. For example, so that you can understand it more easily, here I will take a similar example so that you can compare and easily absorb the understanding that I have given.
An example is a bank where it manages finances and all transactions with a third person system or a centralized system that we often hear with centralization, where everything has to be with a third person intermediary and if we look back if that is the case then in terms of security it is not safe, and the most striking thing is that it takes time to transfer funds both domestically, especially if we want to transfer funds abroad, it takes quite a long time, even up to 3 days.
So if the bank system in which it manages finances and transactions uses a decentralized system, it is absolutely certain that it will be very helpful in our lives, in terms of security that decentralization has very high and also for conducting domestic or even foreign fund transactions. it doesn't take long, just enter the amount and transfer, then in a matter of seconds the funds will arrive in the savings of your friends who are abroad.
Last word
Thus the task that I have completed this time regarding Task 2: Blockchain Decentralization In completing my task, I realize that there are still many meanings that are far from perfect, therefore I apologize to my friends if there are still many mistakes , and I hope that friends will be happy to provide good suggestions or input on my post.
Thank you all, I hope this post can help you all to understand more about Task 2: Blockchain Decentralization.
Regard
@ichsananggap