[Blockchain, Decentralization, Block explorer] - Steemit Crypto Academy Season 5 - Homework Post for task 4 by @sargoon

cover photo made by @sargoon

Hello, Steemit Crypto Academy community! Here I am with my first homework on SteemitCryptoAcademy. In this homework, I chose the 2nd homework question of the 4th introductory course prepared by Professor @yousafharoonkhan. I would like to start my homework by explaining the definition of decentralization.

(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

In the decentralized system, there is no absolute manager, everyone has equal power in the system. Therefore, when an error occurs or something goes wrong in decentralized systems, not all blame can be placed on the administrator or authorized personnel in the decentralized system.

In the centralized system, the rights of community members are limited and managed by a center. In the decentralized system, there are no restrictions on rights, everyone is equal and the members of the community manage the decentralized system with democracy.

The most important feature of the decentralized system is security. To give an example about Blockchain, everyone is equal and there is no discrimination. Since everyone has equal authority, you can perform your crypto money transactions from peer to peer (P2P) at any time without the need for any intermediary. Each transaction creates a node and connects to other nodes, making it impossible for hackers to access your wallet.

Platforms managed with a decentralized system do not request your private information, everyone is anonymous in the system, but centralized systems request your information in order to keep records of your transactions and to store your private data. In this case, you have to rely on centralized platforms while giving your private information. Therefore, the decentralized system is much safer than the centralized system.

Advantages of a decentralized system

• The decentralized systems are user-friendly and care about the privacy of the user. Decentralized systems create long and secure passwords for your account to provide maximum security. With these unique passwords, you can use decentralized systems freely and completely anonymously.

• You don't need an intermediary to use decentralized systems. You can perform all your transactions Peer to Peer (P2P) at any time. Since intermediaries do not work 24/7 in centralized systems, you can only trade during specific hours.

• Your financial transactions and wallets are safe because decentralized systems work with nodes. At the end of each peer-to-peer transaction, decentralized nodes are created. Hackers cannot reach your wallets because every node created is peer-to-peer rather than centralized. Hackers have to hack all peer nodes one by one to access your wallets, which makes it impossible for your wallets to be hacked.

• In decentralized systems, not all responsibility belongs to managers and organizations because decentralized systems are democratically managed by the community.

Disadvantages of a decentralized system

• Most cryptocurrencies in decentralized systems are open to speculation and can cause you to lose the majority of your investment. Therefore, especially newly-created decentralized systems are not safe for investment.

• Since decentralized systems are managed by communities, everyone has equal authority. Therefore, disputes may arise between communities. This may cause the decentralized system to break down and financial losses to investors due to conflicts within the community.

• In decentralized systems, everyone is anonymous, and therefore transactions cannot be tracked by governments. For this reason, criminals can use cryptocurrencies for money laundering.

• The passwords for the accounts you create in decentralized systems are very long and secure, and they want you to keep these passwords very well. This is because these passwords are not recoverable. If you forget your password in centralized systems, there are many ways to recover it, but in a decentralized system, if you forget your password, you will not be able to access your account again.

In what areas of life can a decentralized blockchain be helpful?

Decentralized Blockchain technology systems are the technology of the future. We will probably use decentralized blockchain technology in every aspect of our lives in a few years. People currently think that blockchain technology and decentralized systems are only used in finance, but decentralized blockchain technology can be used for banks, hospitals, industries, social media, and many more divisions of the business.

Financial Sector - Banks

People trust centralized banks and deposit their money in these banks by giving all their identity information and personal information. In some countries, all banks are subordinate to the government's central bank, and if the government blocks transactions in these banks, people may not get their money. If banks switch to a decentralized blockchain system, such a risk is eliminated and people can access their money whenever they want. Another great feature of decentralized blockchain technology for banks is that people can make peer-to-peer transactions without intermediaries, paying very low transaction fees compared to centralized banks. If banks use decentralized blockchain, scammers can no longer steal people's money because peer-to-peer transactions provide high security.

Health Sector - Hospitals

The decentralized blockchain system will make the appointment system in hospitals much easier for both doctors and patients. By using Blockchain technology, patients will write their; currently diseases, currently using medications, a brief explanation of their complaints and allergies to their nodes, and make an appointment for the day and time they want through the appointment system, allowing the doctor to obtain information about the patients before the patients come. Since the nodes will be transferred from peer to peer with one-time identity addresses, only the doctor with whom the patient made an appointment will be able to see the patient's information.

Education Sector - Schools

In the education system, the rights of students are often violated and some students are given privileges. Only with a decentralized blockchain system can this situation be avoided. Using the decentralized blockchain system, schools will create a few special nodes for all courses and students, and they will track students' exam grades, exam papers, homework and oral exams by processing these nodes. Node supervisors will prevent teachers from being unfair to students by supervising students and teachers by attending oral interview exams.

Conclusion

I look forward to seeing decentralized systems and especially decentralized blockchain systems in the future. I am sure that one day all companies and all public institutions will use blockchain and decentralized systems. Best regards to Professor @yousafharoonkhan who prepared this amazing homework. Thank you so much for reading my first Steemit Crypto Academy post! :)