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)

Introduction

Greeting beloved steemians; it is a pleasure to be here again to learn and share. Thank you dearly sir @yousafharoonkhan for this awesome opportunity; I am grateful

Defining Decentralization

Decentralisation in every sense refers to the transfer of decision making and supervision from an individual, organization or group of people(centralized authorities)to a distributed network. In clear terms, decentralization is dissolving power from a central body and empowering everyone involved in the system. A fast food franchise is a perfect example of decentralization as each restaurant in the chain self bears its responsibilities. decentralization is spreading control and power to all levels

Decentralization is the direct opposite of Centralization which is derived from the word central. Conversely, centralization is the transfer of control and decision making to a single central authority. Apple is a great example of a centralized system because all its produce; phone, laptop, Tv, charger and so on are controlled by a single authority

Generally speaking, companies start out as centralized organizations and then progress towards decentralization as they mature.

The main features of a decentralized system are;

• Decision making is quick
• Responses too are timely
• Power of authority is given to every member from top to bottom
• The employees are more engaged and motivated which automatically leads to development

Now, let’s throw a little more light into decentralization. I’ll talk about DEX

DEX stands for Decentralized Exchange. This simply confirms that the online exchanges take place without any intermediary or third party hence users are fully responsible for their every activity.
Once any transaction is launched, it cannot be reversed

It should be noted that DEX allows trading between cryptocurrency buyers and sellers through what is known as Peer to Peer(P2P) needing no central authority. There are over 100 decentralized exchange platforms

screenshots gotten from coinmarketcap.com

These above are a few decentralized exchanges; top and bottom.

Using steemit as a paramount example, once a new user joins, the first advice given is for him or her to keep the keys jealously because once lost, it could never be retrieved.

Conversely In a centralized system, what is used is Centralized Exchange (CEX).

Advantages and Disadvantages of a Decentralized System

Advantages of Decentralized system

There are numerous advantages of a decentralized system which we will see now

1. Security
   With decentralization, there is utmost security as hacking is somewhat difficult

2. Decision making
   The fact that decisions are self made is very important. This is so because every individual is aware of this and bears every consequence

3. Transparency
   Fraud is impossible here as activities cannot be altered

4. Power sharing
   Everyone in the system has power as members feel equal

5. Accessibility
   Traders can easily access their funds whenever for whatever purpose without permission from anyone

Decentralization releases full potential

Disadvantages of Decentralized system

However, decentralization also has its disadvantages. The disadvantages are;

1. Transactions cannot be reversed. Once lost, it is lost indeed

2. It is very costly to establish a decentralized system

3. Everyone does everything therefore there is little or no spécialisation

4. Coordination is very difficult as there is no order.

Everything has advantages as well as disadvantages; the above are the good and bad and decentralization.

Areas of life where a Decentralized blockchain can be helpful

In these paragraphs, we will see how beneficial blockchain can be in the respective areas of life

• Stock chain

If clients are made to know their products in regards to quality, price, color and so on, a lot of cheating will be avoided. From the raw material to the finished good; if all is clear for everyone to see, there will be no way for single individuals to manipulate and cheat. Take the example of a jewelry. Most times, buyers are deceived by the quality. If it uses a decentralized block chain technology, this will be totally avoided as anyone from anywhere can and will confirm rightfully before purchase

• Banking and Exchanges

Accounts are easily hacked nowadays; this is the pain most people go through . This is so mainly because of the centralized nature of transactions. With blockchain decentralization, these ills will be avoided because of its privacy nature

• Education

These days, education is full of malpractices by both tutors and students. It is now very common to hear about unmerited results gotten either through bribes, sexual relations, threats and so on. The legitimacy of results are now questionable because of all these ills; education is no longer what it used to be. If a decentralized Blockchain system is implemented, all these will be avoided as it will be impossible for such manipulations to take place. This will be so because in a decentralized system, all activities are clearly seen and nothing is hidden

• Charity Organizations

As evil as it may sound, some gullible individuals actually hide behind the umbrella of charity organizations to extort and use the funds for self. Resources intended to help the needy in one way or the other becomes private property. With decentralized Blockchain implementation, every giver is sure of what is done with what is given as all is made clean and clear for the interested general public. The organization too will be free from judgements because all the income and expenditures are clearly spelled out. It will be very impossible to misappropriate funds

Conclusion

To conclude;
The application of a Decentralized blockchain technology will indeed drastically reduce the rate
of corruption in our communities and the world at large as all datas will be clearly seen.
Equally, A Decentralized blockchain technology will help us achieve a lot of things within a short period of time.
A Decentralized blockchain will be helpful in various aspects of our lives as decentralization tends to be the hope of the future.
Thank you sir @yousafharoonkhan for such great knowledge, I have indeed learned a whole lot most especially in application.🙏🏽