Crypto Academy Beginner's Course Task 4: Blockchain, Decentralization, Block Explorer
Define Decentralization. Describe The Advantages And Disadvantages Of A Decentralized System. In What Areas Of Life Can A Decentralized Blockchain Be Helpful? (Write In Your Own Words)
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Define Decentralization
In centralisation there is a central body in control of information which often lead to a lack of power for an individual or consumer as the case maybe. Our information are in serious threats of being exposed or hacked in a centralised platform.
A decentralized network is much different from a centralised one because unlike a centralised platform where power, information and data is controlled by a single entity, a decentralized network actually operates on a peer to peer basis where it users computer interact and communicate directly with out any need for an intermediary or middle man.
In a decentralized network personal information is not subject to being exposed or shared as there is no involvement of any third party. Decentralization allows us to cut out the middle man and we easily bypass any involvement of the middle man since we interact directly with another user.
A decentralized autonomous Organization or DAO is an organization managed through rules that is encoded in smart contracts and run on a blockchain. It is an open source software that is capable of being modified only through members consensus. DAO's are much like a set of complex smart contract that combine to form a set of rule that manage the operations of a group of members and their resources.
Problems are not being tackled by a central body or some entity like in centralisation but rather they tackle a problem by creating an infrastructure of co-operation achieved by interaction between the members. All the members in a decentralized platform has a say on what is being said or done, it draws on the intelligence of all it's members to achieve a goal this actually gives it's members a measure of power in the decision making.
In simple terms one could simply defined decentralization as a system or platforms where the power of decision making does not lie on a central body but power is evenly distributed among the members and there is a free flow of communication.
Advantages Of Decentralization
It gives it users a measure of privacy and allows them to maintain their identity.
It saves money since there is no involvement of any intermediary and this means letting go of their fees as well
Decentralization leads to efficient administrative control and proper surveillance
It gives more freedom of action for individuals
It's easy to measure the performance of the operation at the department level which leads to effective control
There is also a free line of communication making for the easy interaction of users
Disadvantages Of Decentralization
Establishment of various departments and acquiring the service of specialist in each department will simply result in higher cost
It creates difficulty in harmonization among the different units
It can lead to a lack of uniformity in policies since any manager is free to create one
It is not suitable for small scale business since it involves a high operating cost
It makes the utilization of the services of exceptionally talented people
Placement of undue reliance on the efficiency of the divisional managers
Decentralization Applications
Banking Sector: Our bank today is run by and controlled by a central entity which are in possession of our details such as our name, date of birth, password and also could have access to our pins as the case maybe, yes they are trusted not to temper with this data but this makes our data to be liable to hacks and being jeopardize easily.
Now if decentralized blockchain is made applicable or is being applied to the banking sector it will enhance or add to the security of account since no third party would be in possession of our data's we would be the only ones who knows this and would prevent hackers from messing with our account.
I also believe that by implementing decentralization in the banking sector it will add to the smooth and easy running of the bank which will leave everyone satisfied and reduce customer complaints which is high at the traditional centralised banks today. So this is one area i strongly believe that could use decentralization
Health Sector: If there was ever a sector where decentralization is badly needed i believe it is the health sector. Yes health is wealth and i believe we should put measure in place to ensure the health sector is running efficiently and smoothly. I mean we are taking about lives here which should be the greatest treasure above all else.
I believe implementation of decentralized blockchain on the health system will guarantee the orderly arrangement of the data of the patient's which could this be easily accessed at any time from any part of the world depending on where the patient is. This will this reduce stress and save time of trying to access data from the previous hospital or doctor who has previously treated the patient.
Doctors could easily accessed a patients data who may have a unique health challenge and know what treatment he has been on and also what his allergic to and avoid it when carrying his treatment because the patient might not be able to talk at the moment probably depending on the condition he was in while he was brought in.
I believe that application of Decentralized blockchain on the health of the country we help out and aid the doctor and patient as well and will not doubt aid in adminstrating faster treatment since the patient's data is ever handle on the blockchain and could be easily accessed and this also brings about translucency in the health sector of the country.
Education Sector: Another important sector i believe could make use of or where the application of decentralized blockchain will greatly enhance is our education sector.
This sector is important as it is in schools that great leaders are taught, our leaders, bankers, lawyers, market woman etc all pass through school. Hardly will anyone not go through the education system even if it's primary level that's why i think the best measures should be implemented in the education system which would help in smooth running of schools and also ensures students data is saved which could not be lost or damaged and could be easily assessed anytime in future for reference.
Sometimes we hear schools are burned down and in the process important information and documents are destroyed along with it because of its centralised nature and data about the students which is important is easily lost in the process which could have all been avoided if only the education system is operated on a decentralized network.
Also in our education system today studying is often discouraged since most times it is those with money and connection who still gets the good grades which is a shame to all that the education system should have stood for. Most times after exams and test students who performed poorly still bribe their way to getting good grades and most times we see a student who hardly study performing better than everyone else. This kills zeal of studying. I tell you if the education system runs on a decentralized blockchain there will be hard for this deception and dishonesty to take place, because once a data is entered in a decentralized blockchain it becomes difficult to corrupt or being hacked or even corrupted as the case maybe.
I believe that making the education system to be decentralized would aid in smooth running of the system while reducing corruption and ensuring the students works harder by studying vigorously knowing there is no way to go around there poor grades whether in cash or kind or through connection whatever be the case. It will also aid teachers/Lecturers to carry out their job of instructing efficiently while also reducing stress for them.
Conclusion
With efficiency of decentralized platforms and the way things are going i believe with time most of this essential sectors should implement decentralization as a way of running things since it is easier and reduces stress and improves efficiency to any system or sector it is being implemented in and would help to drive us forward to the trajectory of decentralized blockchain that we know the world is heading towards when everything would be stress-free and we could easily do anything from the comfort of our homes without much stress.
It is true decentralization haves it's Disadvantages but the advantages greatly outweighs any demerits in it more than a centralised platform where i could hardly say so.