Crypto Academy Season 3 Beginner's Course - Homework Post for Task 2 : Blockchain, Decentralization and Block Explorer
(1) Define decentralization. Describe the advantages and disadvantages of a decentralized system. In what areas of life can a decentralized blockchain be helpful?
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Hello Everyone! I am here to Post my Homework Post for Task 2 given by @yousafharoonkhan.
What is Decentralization?
Decentralized System interact on direct basis like peer-to-peer basis. Decentralized System does not need any third party. Decentralized System is made up of nodes. In a Decentralized System, All Information is distributed to every node on the System.
In a Decentralized System, User is not over control of any central authority or third party. A user is free to manage his resources and free to take any decision by their own.
Each User is independent. User doesn't need to follow any order or instructions of third party or central authority. They manage their own privacy. It helps to keep the system secure.
In a Decentralized System, Every Single transaction is recorded on the Blockchain under Decentralized System. Each Participant has the full right to take all the decisions by their own. They don't work under any central authority and It also helps them to check their decision taking ability.
Decentralization is totally different from Centralization. As In Centralized Sytem, A certain or central authority has total control on all the network. A central authority manages all data and permissions. While In a Decentralized System, there is no singular authority control over the network of sytem. All participants of decentralized system are free to take any decision and they are able to manage their privacy.
As You can see in the above image, In a Centralized Sytem, All Nodes are connected to a single point means a single authority which has control all over the network of all nodes.
But In a Decentralized System, You can see that all Nodes are independent of each other and they don't need to follow any instructions of any single authority.
Advantages of Decentralized System
There are lots of advantages of decentralized system. Some of them are :
1- Transaction time becomes Faster
Transaction made on a Blockchain under Decentralized System usually takes just few minutes to complete. Faster transaction is very beneficial like If transaction becomes faster then we can take our decision faster .
2- Fully Independent
In a Decentralized System, Each User is fully independent of each other. They can take any decision from their own. They don't need to follow any instructions of any single authority and can take any decision at any time, any place. It is also one of the important advantage of Decentralized System.
3- Better Efficiency
Decentralized System allows every participant to make peer-to-peer transactions without the need of any third party authority. Through this, People are able to do their transaction on their own and will not be dependent on banks or any third party for doing transactions. This also saves time as each and every participant can make transaction from their home. They don't need to go to any bank.
4- As every single data is stored on Blockchain in Decentralized System. So, It has all the records of each and evey transaction made by a particular user.
Disadvantages of Decentralized System
• As Each participant is fully independent and able to take decision on their own and able to make transaction freely. So, If we make transaction to a fraud person, then there is no way to get the money back.
• Some participant has lack of knowledge. So, they took wrong decision and then receive loss.
In what areas of life decentralized system can be useful?
1- Improving HealthCare
In a Decentralized System, If a person has a disease, then they can share all the symptoms of their disease to all over the worls through blockchain system. So, It can be shared to all over the world and hence they can get help from any part of the world.
2- Better Transactions
In a Decentralized System, Each Participant can make transactions on their own. They don't need to go to a particular bank as they can make transactions from their own home as it also helps them to save time.
3- Land Records
As in Decentralized System, All the information are recorded in blockchain. So, All land records are safely stored in Decentralized blockchain. So, No one grab the land of any person. If someone has provided fake documents, then it is easily to determine whether they are fake documents or correct documents.
So, This is all about my Homework Post for Task 2.
Cc:-
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@steemcurator01
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@yousafharoonkhan