Crypto Academy Season 3 Beginners' course - Task 2: Blockchain, Decentralization, Block explorer.
Introduction
Hello guys,
It's yet another season here in the crypto academy where we are opportune to learn from our own various professors. I am so excited for this new development made by the steemitblog on the occasion of the 3 tier system or categories. First and foremost, it will go a long way in helping all the new users who never had any idea on crypto currency to have a starting point and to some of us who might have gotten a little knowledge about it, it will help expose us to further studies. Today I want to attempt task 2.
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)
Define decentralization
The word decentralization can be seen as a system in which there is no central authority controlling the entire system. Now, it is important to mention here that we can not fully understand decentralization without actually looking at what centralised system is all about. In a simple language, the word centralised implies that there is actually a place that holds the entire power hence the word centralised. So we can confidently say that the opposite of centralised is decentralized.
For instance, in a scenario where absolute power is in the hands of very few such system is seen as a centralised system. Whereas in a scenario where every individual have equal power, no one person is greater than the other, that system is seen as a decentralised system.
In conclusion, in decentralised system there is no central authority that controls all the system, all units or parts or individual using decentralised system are completely free from restriction made by others. No individual stays and then makes a law for others to follow. Every individual has his or her own right to do what he or she wants to do without anybody's interference. Example of decentralised system is the Blockchain. It's important to mention here that decentralised is actually the direct opposite of centralised because in the case of centralised system, a central authority is always in charge of the entire system and they direct exactly how things should be done in the system from the top. Those down only follows the rules led down by those on top.
Describe the advantages and disadvantages of a decentralized system.
First and foremost, lets start with the advantages of decentralised system, I will be presenting it below in a tabular form.
| S/No. | Atrribute | Explanation |
|---|---|---|
| 01. | Security | The issue of security in any system today can never be overemphasised, decentralised system is difficult to hck based on the security measures put in place while building it whereas centralised is always not too secured. |
| 02. | Equality | One of the greatest attribute of decentralised system is the equality of the system, remember all users has equal right and no individual controls the other, every body here is equal. |
| 03. | Quality of service | Due to the factor that decentralised system is an upcoming system, the technology used in developing it is a very high class technology and that made the services provided by the decentralised system of more quality than the centralised system. |
| 04. | Transparent | Here in decentralised system every transaction carried out is always visible by other user as such any form of fraud can easily be traced. Take for instance when you transfer steem from one wallet to another, in the history space on your wallet it will be recorded that you transferred steem to the username and any other persons who views your wallet will see same. |
| 05. | Accessability | Before this time, to carry out transaction takes a whole lot of time and it may not even be available, but this decentralised system is accessible any where at any time provided their is network in your location and you don't need to work with a third party to accomplish your transaction. |
Since I have been able to list for us some of the advantages of decentralised system, now let's go straight to the disadvantages of decentralised system for anything that has an advantage also has a disadvantage. I will still be presenting this in a tabular form below
| S/No. | Atrribute | Explanation |
|---|---|---|
| 01. | Abuse of power | You will agree with me that since there is no check and balances, in this system, there will be lots of abuse of powers. Now, people use the blockchain any how the want it as a matter of fact, transactions are not easily traced most persons steal government funds and then convert it into crypto currency and store it. |
| 02. | Cost of Infrastructure | As I earlier said, the blockchain technology uses a new form of technology and this equipment used in the decentralised system are very expensive because the speed and availability of transactions all have increased drastically. |
| 03. | Poor coordination | since every individual has the right to do what he or she wants to do in the system, the coordination process becomes very poor. |
| 04. | Lack of Trained personnel | Been a decentralized system, it's members dose not have the privilege to be trained properly as to how to work with the system for an optimal solution. |
In what areas of life can a decentralized blockchain be helpful?
Decentralised system or blockchain as it stands now can be helpful in eventually every aspect of our lives today, but for the want of time I will be listing some few aspect that decentralised blockchain will be more helpful.
- Banking Sector
- Record keeping
- Health department
- Election
Banking Sector:- If a decentralised system is introduced in a banking sector, a whole lots of fraud will be eliminated completely. The time taken for a transaction to complete will be minimize completely as well. For instance, before I learnt about crypto currency, I went to the bank with my father to collect money sent to him by his uncle from USA, we passed through different procedure and filled a whole lots of form and wasted a lot of time on that faithful day before he was asked to go and come back in two days time so the can process the transaction and give home the money. If bank should adopt decentralised blockchain technology this whole procedure will be eliminated and the time spent in the bank will reduce.
Record Keeping:- Once a decentralised system is adopted here, records will be properly kept and it will be transparent enough because it won't be seen by just one person alone. People all over the world can access this record at a single click.
Health department:- Well, decentralised system is also important in this sector because record of patient can be easily accessed by any of the health professional all over the world. It will even be more easier to find a better doctor who is a specialist in the sickness the patient is suffering from. More also payment can be made in form of crypto currency.
Election:- Just like transactions in decentralised system can be seen by others, once this is incorporated in our country elections, the injustice carried out by electoral committee will also be seen by everyone. It's no longer a story that almost every election this days is been rigged. So if this is incorporated it will be difficult to rig the elections because every ones eyes is on it.
Conclusion
Decentralised system is no doubt a system that is fast in movement, there is a tendency that in the nearest future it may be the only type of system we may be operating on. Most people and company are keying into the system.