Steemit Crypto Academy Season 4 Beginners' course - Homework Post for Task 4: Decentralization - Merits and Demerits | by @prolee

Hello big friends, you're all welcome to my blog once again, here am about to teach you guys all concerning Decentralization, this assignment was hosted by Prof. @yousafharoonkhan. So feel free to go through.

TASK

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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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Decentralization has brought a smile to the face of majority persons since it's inauguration into the global world. What this type of system has got to offer will then direct us to finding it's description and meaning precisely.

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Decentralization is simply a system whereby authority or power or source isn't offered by or directed to a single body or government but is evenly distributed amongst the bodies interested or operating on it.

With the above definition, a layman can understand what decentralization seems to be. Looking at it from that angle, one can deduce that centralization is the opposite of decentralization. It's the opposite in the sense that, in centralization, all command or instruction or power falls only on a particular body. And this body have the power to control all the activities that runs in the system.

For example, comparing our local bank and Crypto blockchain. If Person A wants to transfer money to Person B using the local bank, the bank stands as the middle man in this transaction, what happens is that, the bank collects the money from Person A account and then approves the transfer before it will get to Person B account. If it's not stamped by the bank, such transaction can't be completed.
Whereas in the Blockchain aspect, there's no need for a middle man approval. Once transactions are made, as far as Person A has the available amount in his wallet he wants to send, there's no restriction to such transaction, it'll arrive in Person B wallet quickly.

The Blockchain in the above description seems to be the Decentralized system because as far as Person A and Person B operates in such system, they've power to their own transaction without the approval of any middle man. While the Local bank seems to be the Centralized system because it relies on the bank (middle man) for approval.

Decentralization is that father that shares to his children equal properties, as far as they're all his children, they have access to his properties.

We've talked much about the definition of the system let's take a stroll to the merits and demerits of Decentralization.

Merit and Demerits of Decentralization

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This system does not only live in so much advantage to human but it has got some disadvantage too we ought to know.

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Merits of Decentralization

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1. Better Management - a unit or system can be well nurtured only when the head foresee all the challenges of the system in discussion. Which when the system is controlled by one body or is Centralized can hardly reach out to satisfy all it's members but when the power is distributed amongst all the members equally, there would be much satisfaction and better government (government of yourself).

2. Fast Accountabilities or Decision-taking - since information or decision do not wait for approval from a government or middle man but every person makes his own decisions, then the effect is fast accountability or analysis.

3. Reduces stress or much work for the head government - when all the activities are controlled by one person or body, that sole government suffers much burden but when the organization is decentralised the burden is shared and taken care of.

4. Low risk - there are sometimes fear of a middle man in business because a middle man can take the product to be sold and also take the money use in buying and disappear..😂😂.. sounds funny right..?? Of course that's a fact, it happens. But if there's no middle man, then such situation can hardly occur.

Demerits of Decentralization

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1. Lack of Coordination in the organization - any system operating with this pattern of government will stand the chance of suffering no coordination since everybody is a captain of his own ship. Everyone will want to do what pleases him, which one man's food can be another man's poison.

2. Financial issues - decentralization requires much finance or money spending. An organisation must be financially buoyant because it needs money to employ and settle other persons that needs to help control the system grow, making it decentralized. In this issue, an organization that's not financially okay, can't run a decentralized system.

3. Requires Guru in the job - a decentralized organization which has no professional as it's workers can't make a good decentralized system.

4. Policies might not be followed - in this kind of system, since there's no particular head, one person can't come out with a policy and it's expected to be totally obeyed, since every person wants an idea that improves his unit and not really others.

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We've discussed much on the disadvantage and advantage of Decentralization. I'll like us to look out how helpful this system can be to us.

Areas a Decentralized Blockchain can be helpful to human

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Looking at the above discussions on this system, we can say it can be beneficial to us all, irrespective of its demerits. I'll be listing out how the decentralized Blockchain can be beneficial to us. Check below;

1. Using a Blockchain which is decentralized to save data is very safe, since the Blockchain creates a transaction book called ledger which can't be altered or manipulated by anyone.

2. High level of transparency - members or nodes using this pattern in their business have access to the records or transactions in the Blockchain. Unlike a centralised system where it's only the management that has access to the data records.

3. It saves time in transactions - using a Blockchain (decentralized system) to run a transaction takes no much time unlike the a centralised system like the local bank which needs approval first from the management before completing the transaction.

4. Transactions can be traced too using Blockchain since both the sender's and receiver's details including time are stamped on the blockchain.

Conclusion

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Wow.... we've done much, a newbie reading this can for sure be a literate on this topic with the above discussions. So it has come to our notice that this system is a good one, regardless of the few disadvantages it has got. Imagine a country that's practicing this kind of system in it's government, 😂, everybody will do what pleases them, and that's a disadvantage for sure. But this system can help human much especially in this current world.

Regards to myself, @prolee.

Cc:
@yousafharoonkhan
@steemitblog