Season 5 Beginner Course //Blockchain, Decentralization, Block explorer // Steemit Crypto Academy S5 - Homework Post for Task 4 by @ oshimadu

Hello steemians , Today I have prepared this post as my Task 4 in the Steemit Crypto Academy community. To do this, I will answer the second question of task 4 of the fixed courses, taught by professor @yousafharoonkhan.

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Entire question

(2) Define decentralization. Describe the advantages and disadvantages of a decentralized system. In what areas of life can a decentralized blockchain be helpful?

01 Define decentralization.

To know and understand the term well, I think that we must first define what centralization is. Before starting with the definitions, it is necessary to clarify that any of them can be applied in different areas and its main premise is control and decision-making. They can be applied in political systems, in an organization, social networks or a department.

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Centralization is nothing more than the concentration of authority and decision-making in a single entity, person or group of people. In other words, all actions depend on a centralized system, therefore, all the people involved or who are working in that environment are subject to the changes and decisions of that central entity.

A very common example where centralization reigns, are social networks such as Instagram, Facebook, Twitter, Tik Tok, Youtube and WhatsApp, where all users must adhere to their rules and their administrators have the power to close their accounts if they detect that their policies were violated.

Another example of centralization is the institutions of public administration, some are dependent on government management. In this case, all control, regulations, resource management and decision-making depend on the highest authority, the state governor.

Now, the opposite of centralization is decentralization.

Decentralization or decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group

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Based on the previous concept, it is defined as the delegation of authority, powers or actions to other hierarchies. That is, it does not depend on a central entity, it is an autonomous type of empowerment where third parties do not intervene in decision-making and no person can violate user data.

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In decentralization, workloads are distributed equally, since the functions that are carried out do not fall on a single person. In addition, the decisions are their own, there is autonomy and greater freedom. In a centralized system, a decision such as closing Facebook accounts affects a large number of people, something that will not happen in the decentralization model. A clear example of decentralization is the Steemit platform, a blockchain with wide growth worldwide.

02 Describe the advantages and disadvantages of a decentralized system.

Like any model, decentralization has its pros and cons, which I will detail below.

Advantages

• Greater freedom of expression.

• Autonomy reigns in the control of actions and decision-making.

• The time that is invested in decision-making is minimal, since consensus is carried out in a faster way, unlike a centralized system where many more people are involved and the flow of information is much slower.

• The procedures are more effective because it does not require the intervention of third parties.

• It favors the growth of an organization, the functions are delegated and equitably distributed, contributing to the proactivity and potential of the personnel that executes them.

• Motivates users to perform their functions and perform them better.

• The transfer of powers flows from the top down, therefore, each person will develop according to their abilities and potential.

• Offers security in terms of personal data against information vulnerability by hackers.

• It will not be harmed in the face of a massive collapse, therefore, it will not represent major problems for users. If one process is affected, the others can continue to function, meaning not all systems or processes will be delayed or impaired.

• Work is done independently.

• It is possible to verify transparency regarding the administration of financial resources, where they were spent and where they were directed.

Disadvantages

• As it works under a regime of independence, it becomes vulnerable to monetary crimes, since each person can divert funds wherever they want.

• It is very expensive for it to function, since it requires trained people to fully comply with the activities and not make mistakes that involve great losses for the organization.

• It is possible that the decisions made are not the best and the consequences are dire.

• Given that cost is a predominant element in decentralization, it is possible that the personnel are not sufficiently trained and do not have the appropriate equipment to carry out the tasks, information is delayed, or simply, those activities may not be carried out in the right way.

03 what areas of life can a decentralized blockchain be helpful?

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• Banking: With the decentralization system, transactions will be streamlined, in addition to shielding these procedures and guaranteeing their transparency.

• Health: It favors decision-making regarding the personnel trained in the health field, in addition to a better administration of resources for the provision of equipment, supplies and materials necessary for better patient care.

• Industrial: The entry of trained personnel with higher education and specializations in certain areas will make their placement in core positions easier to favor the growth of organizations, greater proactivity, and therefore, greater production. One of the situations that have most affected our country is the placement in key positions of people close to them because they are family, or friends, without the capacity and potential necessary to fulfill their functions, which has resulted in unsuccessful results in the core business activities.

• Political: With decentralization it is possible to minimize electoral fraud, something that has been happening in our country in recent years. The voter himself will have a better control of the vote that he will grant in the system according to his choice.

• Educational: In our country, srilanka , the educational system depends on a Ministry, that is, it is centralized. It would be a great advance if decentralization were implemented so that each teacher can implement the teaching methods that best suit their students according to the subjects that they will teach.

Conclusion

As we could see, decentralized systems work better than centralized ones, they enjoy high security standards, which generates a lot of trust. Employing a decentralized blockchain in many of the important sectors of our country will help make the processes transparent, much more transparent, thus reducing corrupt and malicious acts.

Thanks.

@oshimadu