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Hello everyone,
I'm very interested in this beginner's class and wonderful lectures from our seasoned crypto-professors. This is the second class on this category and thanks to you, @yousafharoonkhan, our crypto-professor on how you teach us with clear words and easy analogy.

This post will focus on the homework task given as slated below and will be arranged meaningfully for easy understanding.

• WHAT IS DECENTRALIZATION?
• DESCRIBE THE ADVANTAGES AND DISADVANTAGES OF A DECENTRALIZED SYSTEM ?
• IN WHAT AREAS OF LIFE, CAN DECENTRALIZATION BE HELPFUL?

WHAT IS DECENTRALIZATION?

Decentralization is a term used to describe a system without a central authority or body. In this approach, there's no top-down hierarchical order where the leadership at the top echelons issues rules and control resources. Here, management, decisions and resources control are transferred to the clients. In Decentralized system, the different and several composite units or clients decides for themselves and control their resources without intermediaries.

Unlike in centralized institutions like banks where the resources from the clients are kept in trust with very few managerial class which servers as a central body where financial decisions and risk taking are policied and executed. The control of the resources in trust are executed by the central authority with or without the dividends reaching the real owners of the resources. But in decentralized system, there's no central authority. The financial decisions and policies are in the care of those actual owners - clients or customers. The risks, loss or profits are their direct reward for any decisions that they embarked.

In Centralized system, clients are not consulted and there's no transparency on the financial dealings conducted. But in decentralized system, there's transparency in the financial dealings and various clients are consulted absolutely.

DESCRIBE THE ADVANTAGES AND DISADVANTAGES OF A DECENTRALIZED SYSTEM

Advantages of a decentralized system includes:

• TRANSPARENCY

In a decentralized system, the financial transactions are free from dishonesty and fraud. It's publicly disclosed and can't be influenced by governmental and managerial bodies.

• Financial Autonomy

There's transfer of the right to make financial decisions and resources control to the several clients. There's no central authority.

• P2P EXCHANGE

The financial transactions on a decentralized system are purely user's basis without any intermediaries. It is done via P2P exchange. P2P stand for peer to peer transaction.

• SECURITY

Data and financial transactions on the decentralized systems are highly protected and secured from the manipulation of the hackers.

• Efficiency.

Since every user tend to develop themselves individually and there is no central authority to curtail their development. Decentralized system provides a wonderful platforms for such improvement.

• DISADVANTAGES OF A DECENTRALIZED SYSTEM INCLUDES:

• CRIME

Because every do whatever they want and not to give account to anybody else on how his/her resources are managed. Many criminal activities are performed freely here without being questioned. Crimes like money laundering, Ransom payments etc.

• UNTAXED ASSETS.

Government thrive with the money gotten through taxes. When these funds are put into proper uses, there's infrastructural and developmental improvement in the area. But with the way that decentralized system works, it is very difficult, if not impossible for the governmental agencies to know the funds and calculate the taxes too.

IN WHAT AREAS OF LIFE, CAN DECENTRALIZATION BE HELPFUL?

Several human endeavors will be improved, if they are decentralized. These activities includes:

• FINANCIAL INSTITUTIONS

The power of crypto-currencies and blockchain technology have enhanced the performance of our traditional banking system which is highly centralized. When the banking sector is fully decentralized, the advantages of being a purely decentralized system will be utilized while it's demerits will be handled with a measure of Centralized factors.

• Health Services.

If the health services are decentralized, the data and details of the patients will be easily understood and evaluated by various doctors, technicians, specialists and scientists from all over the world. The treatment will be highly effective and the inputs will be used to handle similar situations worldwide.

• LAND AND ESTATE PROPERTY

Land and other properties ownership and usages have been subject of litigation for different time and areas. It's usually difficult to handle and can causes a lot of destruction and life lost too.

With a decentralized system on this arena, the records and documents will be openly and vividly used to decide the ownership and such litigation will be solved.

• EDUCATION

If this vital sector of humanity is highly decentralized, everyone will be in charge of their knowledge and training with little or no attachment with the educational institutions.

The dark effects of pandemic like the recent Covid19 shows that centralized system of education can be affected. More decentralized features should be enhanced and improved to increase our educational activities.

• Communication.

Humans are social animals and socialize regularly. Modern communication gadgets have enhanced these aspects of humanity. But more is still needed. The modification of steemit and other decentralized platforms on these social media have makes it highly effective and with rewards.

CONCLUSION

Decentralized systems are highly vital to humans with many benefits. The demerits too can be handled.

Decentralized systems involves all the users and not only the top echelons making the system very potent and modern.