Steemit Crypto Academy Season 5 Beginners' course - Homework Post for Task 4: [Blockchain- Decentralization- Block Explorer]
A good day to everyone here in steemits,I believe we all are doing well. I will be talking about my homework task3 for this season. follow carefully as I begin.
QUESTION TWO [2]
(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)
Define decentralization?
It is seen as the method whereby all users in the system are given legal rights and permitted to make decisions.
it can also be seen as the dispensation of power to all users from the top to the bottom. although this system has no center yet every user is linked to it. in this system also everyone is at liberty to declare one's opinion and everyone is free to make a decision, it is a system that has no rules that restrain users from having their own choice or judgment.
Unlike a centralized system, the decentralized system is held in check by the various position of responsibilities than just a single office.
To make this clear, allow me to cite an example. Solomon runs a business which he owns and employs people to come work for him, by the time he chooses to make some changes in the business he tends to do it himself without involving others and no one has the liberty to express his/her own opinion concerning the changes to be made that is because Solomon is the boss whose authority can not be compromised and him alone has the power to make decisions. so this scenario is what we call a centralized system in which the happenings going on in the system is dictated by just an office.
The second example is, Solomon, John, and Mary come together to run a business, so both Solomon, John, and Mary have freedom of expression in decision making because they all have equal rights based on the order of their importance, so not just one of them but all are entitled to make a decision. In a nutshell, this is referred to as decentralized system
With the few examples above we can say, decentralization in the crypto domain is coming to be of various systems/blockchain that lacks or have no central power that enforces rules.
What are the advantages of a decentralized system?
A decentralized system has a lot of advantages, below are some of these advantages
1- With a decentralized system burden/load is decreased on a person having responsibilities for the everyday activities of an organization.
2- It promotes corporate strategy in the sense that its diversification of the decentralized system is facilitated.
3- It enhances fast decision-making. as a decentralized system, all decisions are welcome since there is a cordial relationship and understanding that exist from all hierarchies that exist in the system and on that note provides quick decision making to promote the system.
4- It promotes room for good handling and proper supervised system. since all users connected to the system are involved it will be hard for the system to be compromised and this helps to oversee the system and generally provides proper supervision.
5- It enhances willingness of action especially in behavior, in the sense that everyone is motivated and is ready to do their respective part and play their role effectively.
6- Decentralized system blockchain has a well-developed and guaranteed security that is not easily tampered with, it is powerful and not accessible by the public, but can only be accessible by an individual or a specific group.
What are the disadvantages of the Decentralized System
As we all know there are always disadvantages to everything, so some of the disadvantages of the decentralized system are listed below.
1- In the decentralized system of the cryptocurrency world, the value of properties and assets either rises or falls, and as such the users or handlers are affected by this movement.
2- inefficiency of transactions in the decentralized system is far greater than a centralized system.
3- Here the decentralized system is on the high side when talking about affordability.
4- The decentralized system is low, also power is absent and it is not properly arranged.
5- Extravagant spending of money, due to the fact that the outgoing and incoming flow of money is not monitory and so everyone tend to spend money lavishly without proper planning.
In what areas of life can a decentralized blockchain be helpful? (write-in own words)
There are a lot of ways a decentralized blockchain can be helpful, let's take a look at the few below.
1- It helps in transforming business, when there is trust it pave way for judicious use and functioning of such business by eradicating duplication of endeavor/effort. and also information shared either between or across various business networks is traceable.
2- It promotes transparency especially in the voting system, things like verification as well as the total number of voters can be kept saved without the need of a third party, neither the number of voters can be compromised because everything is saved as data in a blockchain, so as such it can not be tampered with.
3- It helps in keeping records to preserve information of a business or operating system and with this record-keeping, any alteration of such information will not be successful although it is so simple to store this information or record yet it remains uncompromised nor can the saved information be changed by anyone who is not connected to the system.
4- It also helps a lot in the banking system, thereby privatizing transactions especially if you want to deposit money to an account, unlike the centralized banking system that enforces one to go to the counter, and then you will be provided with a deposit slip to input the address of where the money is going to. the decentralized system provides users with an easy way to send money without undergoing such stress and also the transaction which is carried out in this particular system is private.
Adopting the decentralized system in any organization entails that decisions are welcome from all hierarchies connected to the organization an example of this system is the Steemit platform where everyone's ideas and expressions are welcomed, unlike the centralized system that only the authorities or those in position have power in decision making
All thanks go to professor @yousafharoonkhan for these great teachings. A job well-done Sir.
Cc:
@shemul21
@ @yousafharoonkhan