Crypto Academy Season 3 Beginners' course - Homework Post for Task 2: [BLOCKCHAIN, DECENTRALIZATION, BLOCK EXPLORER] by @reddileep for Yousafharoonkhan

HOMEWORK TASK-2

Entire Question

• 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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The process of any organization accomplish without a single owner and all the activities including planning and decision making are distributed to every user in the blockchain. That is the basic introduction of Decentralization. Then, I will deeply explain about this,

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HOW DECENTRALIZATION WORKS

• Before few years, we didn't have a proper technology to widely support decentralization. Now we have blockchain technology. We can simply define it as a chain of stored information which is safe and secure. We don't need to depend on any central organization.

• It is very easy to access to our data anytime and anywhere. No one can change or remove our data from the storage. No any single owner for those storages. Because all the users are fulfilling the network by themselves

DIFFERENT BETWEEN DECENTRALIZATION & CENTRALIZATION

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• Basically, in Decentralization the users have the freedom and they don't need to depend on someone to make a decision. Also, no one can change or delete someone's data.

• But in Centralization, there is an owner to control everything and everybody should depend on the owner or the company or organization.

• Further, owner can change or delete any user's data within the centralized system. Because every data should be stored within the owners server and only the owner has the direct access to those servers.

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ADVANTAGES

• Security of the Data

User's data is very safe and we can keep our data without losing or Stealing. But we should have to keep our access data in another safe place. That means, we may retain our data as long as we don't lose our access information.

• Management Right

The Management Right of the data or organization will not depend on an owner. Everyone has the same right and power to access and use data. There is no pressure from top positions as we have the freedom to control and use our data without anyone's permission.

• Durability of the System

As the system doesn't have any central network or storage, the durability of the system is too high. Because, in a centralized system if the main server is down, all the system is not working. Also, if the owner finds it difficult to bear the system, whole users within the system will be down. Here, it does not happen because the system does not depend on an individual.

• Fastest Transaction Between Users

In a Decentralized System, every transaction are very fast. Like Steemit Platform, every transaction between user or from account to other exchanges are very fast and accurate.

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DISADVANTAGES

• The beginning is Very difficult

The beginning of a Decentralized system is very difficult due to lack of human dedicate. As the Decentralized system doesn't has any single owner, users don't forward to start that type of system. Not everyone is trying to give a start but hoping someone will do it.

• Lack of Knowledge

As some of users in a Decentralized system don't have much knowledge about this system and procedures, they are wasting resources unknowingly.

Like losing access data to the system and creating new account day by day.

• Unnecessary Increase in Fake Users

As everyone can join to the system without someone's permission, fake users can be increase and they stay without proving their original identity. Most of the time, fake users are trying to stealing someone's content without creating by their own efforts.

• Mistakes can't be Recovered

If you do any transaction by mistake, there will be no undo process during any transaction.

Like if we send Steem token to someone by mistake, we can't get it back as we don't have any owner to the system.

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ONLINE EDUCATION SYSTEM

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• Nowadays, online education is becoming very popular. So, instead of paying high fees for centralized websites, we can pay attention for a decentralized teaching system. Then, we can save our time and money. Also, every payment within the decentralized system will be fast and accurate.

DENCENTRALIZED DIGITAL BANKING SYSTEM

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• We can gain a lot of benefits from a Decentralized Digital Banking System. As we don't need to depend on an owner of the banking system, the profit will be equally distributed with every users. And also, we will be able to do any transaction instantly and safely. As the details can't change, we can prevent from hackers.

TO SET UP A FUND FOR CHARITY PROGRAMS

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• At present, there are a lot of charity programs in the world. However, problems can arise because it is run by an individual. So, if it is working as a decentralized system, no one will be able to cheat and all the details of the programs will be safe and secure. Also, we can create a big donation without extra fees.

VOTING FOR SOMEONE OR SOMETHING

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• If we are able to Decentralize our voting system, we will be able to operate it accurately and efficiently without the influence of an additional party. Also, no outsider can change or erase the information. It will be very helpful to make the right decision.

This is my Homework Post for Task 2. I have cited all image sources properly and cover image is created by me.

At the end of this article, I would like to appreciate professor @yousafharoonkhan for his effort for creating very essential lessons on behalf of us.

Thank you...