Decentralization-Crypto Academy S5 - Homework Post for task 4 by @peerfaizan
Hi everyone,hope you all fine.I am @peerfaizan with my another Homework task-4 of @yousafharoonkhan .so let's start my homework task.
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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)
Decentralization
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We all known Bitcoin is the first cryptocurrency which was made and it spread the power to control the currency of many people and this made it more effective with the control of its value as the blockchain makes a opportunity to an individual to become a owner of his own network.
We first look on centralisation.In centralisation the all powers are on one hand. Decentralised is one of the important factor to solve all of this gives a network controlled by multiple computers where each progress it's own data from a previous block create by the other user allowing each of its end user to create it's own policy and maintaining their own privacy to safeguard.
As I am a steemitian and I share a example of decentralisation is steemit community,in which every person has power to become a whale as long as your have the right attribute to offer to people on the platform also having to group up in different communities and become moderator of the system at large.
Let's now,I share you a table about difference between Centralisation and decentralisation:
Centralisation | Decentralisation |
---|---|
Centralisation gives us all power to a single person | Decentralization gives us power to all its users. |
In centralisation the decision making by a single user. | In decentralization system decision making by a every user. |
In centralisation output has been controlled by a leader. | In decentralization output has been controlled by all users. |
Centralisation is a slow process output. | Decentralization is a high and effective output. |
Describe the advantages and disadvantages of a decentralized system.
•The biggest advantage of decentralisation is that in this system the tranfer of power is transferred from high to low and every person has opportunity that every person connected to this system develops according to his ability and potential.
•Curruption and frund can be ejected by decentralisation system because everything is transparent in this system.
•Money transactions are so well organised with proper time all over the world.
•The most important thing of this system that the data in decentralization is protected from hackers and data cannot be specially made by anyone.
Disadvantages of decentralisation system.
•Lunching decentralisation system needs lot of money.When somehow a money transfer from a user to wrong account user,it is impossible to bring our money back.
•In this system, everyone had not ability to make punctual decision,which lead to many person suffers the outcome of wrong decision.
In what areas of life can a decentralized blockchain be helpful? (write in own words)
Health Sector
land revenue
Conclusion
I am thankful to @yousafharoonkhan who teach me a well detailed lecture.