Crypto Academy Season 3 Beginners' course - Task 2: Blockchain, Decentralization, Block explorer

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(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)

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✅ Define decentralization.

🔹 If power is decentralized in a system such a system is called a decentralized system. That is, decentralization is the division of all powers and decision-making rights equally among all individuals without giving all the powers and decision-making power within the system to one major authority. There is a system in place where the rules are enforced so that the individual has complete freedom to make decisions regarding the system.

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There is no main client in such a decentralized network. Here each person operates as a separate client. As you can see in the image above several computers have been merged to form a decentralized network. So in a decentralized system such computers are called servers. These becomes functional separately. In a decentralized system such computers are called by a specific name to "nodes".

I will give a simple example of decentralization. Isn't Steemit the best example of this? When we create an account on steemit do we give all our personal information to steemit? Only email verification and phone number verification are done during account creation. The main reason for getting such a verification is that if for some reason our account falls into the hands of a hacker we have to prove the ownership of the account to recover it. That is why email verification is required. After creating the account we will set up the profile. We may change the information on this profile at any time. And no one else can change our profile information or articles we post. Only we have the right to change it. Imagine if there was such a system on other social networks like Facebook, twitter and Instagram. Then you will have a better understanding of decentralization.

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✅ Describe advantages of Decentralization

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1️⃣ The main advantage of decentralization is that our personal information does not belong to another person. That is, no one else can harm our privacy.

2️⃣ Unlike a centralized system the server owner cannot block access to the account when needed. That is, no one can close your account when you act against this organization or any of its illegal activities.

3️⃣ Highly personal security. That is, an individual cannot access any user data.

4️⃣ Since power is not under a central authority, everyone involved in the system can grow according to their ability. Take steemit for example. How many different abilities are there in Steemit? Some are talented artists. Others are good at photography. Craftsmen and good authors are also here.

5️⃣ Due to the high transparency can eliminate corruption and fraud.

6️⃣ Another advantage of decentralization is the ability to exchange money between different countries and different nations around the world in a very efficient manner.

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✅ Describe the disadvantages of Decentralization

1️⃣ The right to make decisions is divided between individuals which can sometimes lead to controversy. This is because each person's ideas and attitudes differ from one another.

2️⃣ The impact of hackers. All our funds will be alienated if our account falls into the hands of a hacker. We will not be able to get those funds back. The disadvantage is that there is no proper methodology to prevent such acts.

3️⃣ It is also a disadvantage that anyone can transfer their funds to another as the fund management authority in such a system is independent. The best example of this is when multiple account users transfer funds to each of those accounts.

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

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1️⃣ Business Division

Digital records used in decentralized blockchain can protect important business documents and data from fraudulent individuals. That is, all financial transaction records, insurance records and trade secrets can be encrypted. Then it will be difficult for anyone other than the person entering the code to understand it.

2️⃣ Health sector

Transparency in the World Health Organization. I will give a good example right now to illustrate this. Many countries today suffer from the corona virus. So the World Health Organization has a record of the number of reported cases and deaths in each country. This can be considered as an occasion when decentralization has affected the health sector.

Also through such a system doctors can together and talk about various diseases and their cures. And accurate data records of any disease and the number of infected patients can be stored under this system.

3️⃣ Goods Exchange and Trade Division

In this decentralization traders can sell their assets to another person whenever they want. They also have the full right to buy whatever they want from someone else. To it cannot be influenced to external parties.

4️⃣ Financial sectors such as banks

Utilization of decentralization to ensure transparency in financial transactions within financial institutions such as banks. This will help them to gain the trust of their customers. Then be able to continue the work of the institution without any problems.

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Professor @yousafharoonkhan's article was very helpful to me in completing this achievement. I wrote this article after studying it well. Also, his article added some new facts to my knowledge of steemit.

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Thanks for reading..❤

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Cc :-
@yousafharoonkhan