Crypto Academy Season 3 Beginners' course - Task 2: Blockchain, Decentralization, Block explorer : Homework for @yousafharoonkhan...!!
Greetings to all steemians , as you may have fetched from the heading i am here to post my homework given by @yousafharoonkhan .
(2) Define decentralization. Describe the advantages and disadvantages of a decentralised system. In what areas of life can a decentralised blockchain be helpful?
Ans :
Define Decentralization :-
Decentralization can be simply defined as :-
"It is kind a peer to peer network in which any sort of information is shared within the network where no one is at charge and every peer is equally empowered.
In Decentralization there is no body that can overtake your power or can make any harm to you because every one in a decentralised system have equal power and importance. The data in this system is just like shown in the picture from node to node.
Advantages of decentralised system :-
Following are some important benefits of this system.
- Everyone is autonomous :
Just like i told in definition, the is no superior authority in this system . More or less Everyone have equal access and is held at same position no matter on which node it lies at .
Being in power creates a confident environment and every peer feel more positive about it and gradually the interest of the peer is more developed on the system.
No prolonged and difficult transactions :
In this modern and digital world no one likes old and traditional way of transactions because they are not only slow and difficult to proceed but also less secure. This system gives more credibility to this experience and it makes your transactions very quick and efficient so that you don't have to rely on old sources.Top executives don't have to be worry :-
Decision making and analysis is the biggest responsibility and when it comes to decentralised system the top executives don't have to worry about that because all the decision making process is at local peer level and all that analysis and processes take place at lower levels.
Transparency :
This is very open to everyone. Information and transactions are secure but transparent. You can easily check any user's Accounts, assets, transactions and each minor details . its transparency makes it distinguish it from rest of the systems.Expansion is easy :
As there is no such formal barrier so it is very easy to expand and hence new peers at each next node keep on adding so it grows much easier and fast as compared to any other such system.
Disadvantages of Decentralised system :
It is natural rule that everyone good things comes along with drawbacks and same thing goes with this system so let's talk about its disadvantages ;
- Internet Crimes/ illegal transfers :
Such plateform attracts evil eyes and it is very easy to use it for illegal transfers. When you transfer famous cryptocurrencies like bitcoin you can pay a huge amount for any illegal activity that would be very fast and could be transferred to anywhere in the world and the biggest thing that make it happen is that you can't track the personal information and you would have no idea who has sent it and to where it has been transferred .
Expensive to manage :-
This system is very quick so if you make a mistake while sending there is no chance to recover you amount so there would be no chance to undo your mistake . So you need to hire professionals if you want to be a part of this system and hence you would have to pay high and it would be very costly for you.Loss of Control :
From all above it would have became obvious to you that this system has all control given to the peers so it is nearly impossible to control any activity by anyone . So with less control things can go beyond the level in which you want them to be in.
Areas of life where Decentralised system can be helpful :
This system could be helpful in many areas of life , let me explain ;
- A Revolutionised Banking system :
You can launch a totally innovative banking system for businesses man where they can perform all transactions fast and efficiently but you would have to consider all the pros and cons before you do that.
- Linkage of small businesses :
All the small businesses can connect to grow faster in which they can exchange their raw goods and other services and even planned marketing strategies can be organised just like it happens in food chains where each branch is responsible for itself but they all are connected to each other . This is perfect example of decentralised system in real life.
- Local government administrative decentralisation :
For improvement in society and personal assistant in local development government can make decentralised units for various departments . These units would be observed by government but they would be responsible for the betterment of their personal catagory or block so in this way when different units would assist for different departments , it would be beneficial and because of transparency the fraud and corruption is very less likely to happen.
So this is my homework post. I am glad to be a part of this academy. Thanks for reading 💞🙂
