[Decentralization] - 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)
Hello everyone, I’m very excited to continue my second task of the fixed introductory courses of the steemit crypto academy. In my task today I’ll elaborate on decentralization, advantages and disadvantages of decentralized system and areas where decentralized blockchain can be helpful.
Decentralized system works on blockchain. Blocks are interconnected with each other to form a blockchain. The blocks contain information. When a block is full another block is created that’s were the chain come about. The information stored in the blocks then becomes security tight and cannot be altered. Since decentralized system works on blockchain it’s very safe and secure. In my understanding of of decentralization, unlike centralized system where information can only be accessed from one source in decentralized system there’s no barrier or intermediary between the user. One interesting thing about decentralized system is that it is not controlled by any external bodies but the users. It also creates a system where it users monitors the system unlike centralized.
Decentralized system has lots of advantages and here are some
The biggest advantage is that in this system the transfer of power is transferred from the top to the bottom and thus every person connected to this system develops according to his ability and potential.
Decentralized system provides are base which everyone can utilize the system. The more knowledge you know gives you the advantage to explore more. For instance you’re limited on the amount of transactions you can perform on daily basis unlike the centralized systems where transactions are limited.
The transparency of the decentralized system can help stop crimes such as corruption and fraud.
Any transactions that goes on a decentralized system is made available to everyone and everywhere this helps reduce frauds and corruption. For instance when an individual takes an amount of $500 for an item, the price can not be changed unlike centralized systems where it managed by one governing body.Decentralized system provides a platform where transactions can be done more efficiently and everywhere around the world. For instance cryptocurrency is now accepted everywhere in the world now and transactions can be performed at anytime and anywhere unlike the centralized systems. Centralized system for example a particular bank “a” found in Europe may not be found in Africa making transactions difficult if the person travels.
Decentralized system is operates on a blockchain network which stops intruders from getting access the content stored on the blockchain.
Decentralized system prevents fraudsters from getting access to data stored on them unlike centralized systems where information can be accessed from the central store.Centralized system has especially banks has time frame which they work hence limiting the time which transactions can be performed for decentralized system transactions can be performed at anytime and at your own convenience. This makes decentralized system more efficient and attractive.
Decentralized system has no central body governing it but allow everyone to work independently but interconnected. This makes it very fast since it’s not regulated.
Decentralized system can be more useful in governing a country especially the financial sectors. Transactions made can be easily be calculated since the transactions are made known to everyone. This can help identify which part of the country most money is spent.
In trying to solve the flaws of centralized systems decentralized system still has demerits which I’ll talk about;
One of the flaws of decentralized system is the unlimited transactions that can be performed by individual which is not regulated by anyone. People take this as an advantage and commit all kind of frauds without being questioned. Centralized system because it being govern by a central body control transactions performed hence minimizing the crimes performed.
One of the challenges encountered using decentralized system is refunding money. When an individual mistakenly transfers money to a wrong account the money is irreversible since there’s no intermediaries to help do the refund. When a transaction occurs in a centralized system the centralized body has control to retrieve the money since they control all the activities.
These flaws are few but with time I think these problems can be resolved. I’ll advise that we learn more about the decentralized systems before undertaking any activity.
Health Sector
The health sector is important sector in development and improvement of it will help save lots of lives. Bringing the health sector to a decentralized system will bring about massive improvements in the life of people. But the big question is How are is it going to improve the health sector? Decentralized system creates a platform where information can be accessed from wherever we are in the world. When the health records of patients are stored on a decentralized system it will be made available to all hospitals on the system which will make diagnosis quickly and improve treatment. Looking at the traditional way in which patients are treated, the information about the patient is only available to one hospital the patients visit so when the patient is being transferred to a different hospital, the patient will have to undergo another diagnosis which intends delay time for which the patient can be treated hence low chance of survival but when the data collected are being stored on a decentralized system it will make the data available to all hospitals hence reducing time spent on diagnosis and giving a higher rate of survival.
Land Revenue
In recent times land acquisition has been one of the causes of conflict in the world. This happens when the data for the land is being altered and sold to another person. For this to end there’s the need to change are system to decentralized system where information is transparent and and can not be altered. In the decentralized system the person will just have to check the information of the land in the decentralized system and when it’s available the land can be purchased without any conflict. Land is a very important natural resource and should be kept safe. The decentralized system will help stop land conflict associated when buying lands.
Elections and Politics
There’s no doubt that election has brought about war in many countries due to unfair and bias way the elections are conducted. The decentralized system operates on the blockchain network which cannot be altered by intruders and fraudsters. When decentralized system is employed it’s going to bring about fair and transparent election since votes recorded cannot be altered. This is going to promote peace in the world.
In politics, the government can use the decentralized system to help them plan the economy since the money spent in various sector can be monitored. The government can have a correct view on what the country is lacking and where most part of the country’s money is going this will help stop corruption in the country.
Financial Sector
The financial sector consist of are banks which are solely based on centralized system. The centralized banks who interfere in daily transaction activities and delaying transactions can be minimized. Cryptocurrency is growing at a faster rate due to the numerous advantages it has over the centralized system. Identify of the individual is not required to perform transactions and does not limit the individual as centralized system does. In decentralized system transactions can be performed anytime and at everywhere unlike the centralized system.
Looking at the rate the world is developing, decentralized system will be required more to keep up with the pace of development in the world.