Steemit Crypto Academy Contest / S1W3 – Blockchain through the concepts by @swaylee
Greetings Everyone,
I welcome you all to my 2nd engagement entry for this week and today we would be looking at a really popular Blockchain terminology which I have talked about before in many other posts of mine. It happens to be my favourite aspect of Blockchain technology and this is none other than Decentralization and this decentralization has gone a long way in making cryptocurrencies the safe haven it is today so let's get started
What is a Blockchain
A Blockchain is a recording system where transactions carried out are stored across a wide range range of computers in a distributed network all of which are linked through a peer to peer network. This system of recording transactions makes it nearly impossible for one to hack and gain control over most of the systems as well as manipulate any data stored on the blockchain.
It is a network where transactions carried out by its users are recorded by validators, miners, witnesses or representatives in such a way that the information stored cannot be easily tampered with by the validators/ miners or any other person or third party.
The advent of Blockchain technology has brought about a new era of development when it comes to storing information because the centralized system has been taking advantage of their supremacy and authority by manipulating our transactions and accounts under their care. Blockchain technology has brought about alot of life changing things to our door steps for example cryptocurrencies, dApps, Steemit and so on by bringing about decentralization, cryptography and lots more. This brings us to my favourite blockchain concept which I would be looking at in the next section of this post.
What is a Decentralization & What is it about
Decentralization involves the removal of one central authority which would handle and oversee the whole situation on a normal business and sharing that power equally amongst all the users of the system. Decentralization in Blockchain makes users accountable to their account and gives them exclusive right to perform any transaction on this said account. In this system, transactions are true, transparent and made available to everyone who wishes to see it. This information cannot be alter or deleted from the records as it recorded on the blockchain.
A big example of decentralization here can be seen under this example. A decentralized exchange like SunSwap only needs you to link them to your wallet to perform transactions. You also hold your wallet private keys and perform as much transactions as you want with no restrictions but a centralized wallet holds your keys, places restrictions on your account and you have to relinquish a large amount of personal information to them before you can make use of their exchange.
Basically from a look at Decentralization today, I can say it is about shared decision making (Equal say), autonomous account control, Account freedom and privacy.
Merits of Decentralization
There are numerous merits concerning decentralization and I would be looking at a few of them just below.
No one gets left out in the decision making process. Everyone has a say and is accountable to their own decent. No central authority to rule over the system with an iron fist.
It is built on blockchain technology so transactions are immutable and are immune to censorship hence no one can hide their transactions from the public and neither can they manipulate the system to favour them.
Increased security owing to the fact that since it's on a blockchain network, the transactions are recorded on a large number of computer systems around the world so if there were to be an attack, it won't affect the whole system and the issue would be rectified speedily.
Immune to government and other external bodies attack. Decentralized products built on a blockchain network are immune to government rules and control. If there were to be a crypto ban in a country, it wouldn't affect the trading activity or anything on the blockchain network
Demerits of Decentralization
Indeed nothing is without it's flaws hence here are some downsides to decentralization
Criminals get away with their crimes. Crypto newbies are often scammed and their wallet is emptied but due to anonymity, even if the transaction is traced, the money can't be returned or the scammer can't be traced so he/she can carry on with their nefarious activities without getting caught.
Irreversible mistakes can destroy ones earnings especially on decentralized apps where transactions are final. for example, on Steemit when someone sends money to their Binance account I.e deepcrypto8 but end up sending it to deepcrypto08, it can't be reversed until the receiving account sends it back and this might not end up happening.
Since decentralization has to do with removal of intermediaries like banks and other centralized applications so people who work in those centralized exchanges like banks are laid off due to reduced users hence it causes unemployment
Decentralization in blockchain is only possible with a blockchain network and blockchain network are really expensive and difficult to create and this is the reason why not just anyone can create his/her own blockchain network.
Why do you think it is important in the blockchain?
Well I think decentralization is one of the most important aspects of Blockchain because it makes the blockchain a trustless environment and why do I say so, everyone keeps their keys to themselves for the safety of their account, any leak and your account would be compromised. There are also alot of scammers on the crypto verse right now and they are looking for quick money so decentralization makes people stand on their feet and think for themselves because any mistake they make won't be reversed.
It strengthens the system by reducing the point of failure in the system. Aside from how secure the system is, each system is built separate from each other and there are numerous computers on the blockchain so if one is corrupted or compromised the others would still function well with or without that one faulty system.
It makes the decision making process easier and reduces work load which would have been forced upon the central body. Since everyone is in-charge of their own stuff and make decisions by themselves it would definitely better the blockchain as everyone is working in their best interest.
Do you think that the existence of the blockchain would be possible without this concept? Is there an alternative or similar term?
If you have been following up my post from the beginning and you came across my definitions, you would find out that Blockchain is more like a recording system while while decentralization is sharing work equally so that everyone is involved in the decision making process so without a doubt Blockchain would exist without decentralization.
The only problem here is how Blockchain technology would be used without decentralization. Centralized systems would just adopt the system and it would still be unfair to users because there would be third party involvement in our transactions and we would be under the mercy of these central bodies. So Frankly, they would definitely be the existence of Blockchain without decentralization but there wouldn't be the freedom and rights we have today from decentralization.
Do you think it is possible to improve this term in some way? Explain to Us how
Under Blockchain technology in decentralized apps and exchanges, a little mistake and all ones funds are gone especially when transferring from one user to the other and this really should be changed in one way or the order. If only there was a way for a user to be able to undo last transaction or something of such sort because in the crypto verse there are numerous cases of misinformation and error leading to the sending of funds to the wrong account with no assurance or hope of retrieval. This point would also help in case of cryptocurrencies scams where they gain access to your wallet and empty it, you can simply undo the last transaction and move your assets to a safer place.
Another thing I would love to change is the fact that once one's keys are gone, they have no way of retrieving their keys. In Centralized exchanges like Binance where you make use of a password which you can recover in the event of loss but on a Decentralized wallet or app, if one losses his or her keys, they are done for. I have many friends who lost their Steemit keys with funds inside hence there is no way to retrieve it.
Conclusion
Decentralization is a very important aspect of Blockchain technology and it didn't come alone, there are numerous other things that were born from the advent of Blockchain technology like cryptocurrencies, cryptography which have also given birth to more and more terminologies and concepts so as days go by development brings about more development and the process continues. Thank you for reading.
I would love to invite @victoh78, @weasell and @awesononso to join me in engaging in this contest.
The idea for us writing on different concepts was good. This is truly a learning experience as one has to learn a concept well before talking about it.
You have shown you master the concept of decentralisation on blockchain networks. Thanks for sharing your thoughts with us.
Thank you very much. I would also love to read your entry, you can share the link with if you have done it so I can show any little support in my power
One of my main fear using cryptocurrencies as a means of payment is the fear that one single mistake could be Soo costly and you could send your funds to a non existent account
That has been one of my greatest fears too especially last year when I tried to withdraw 40 steem and I made a memo mistake and all the money just disappeared. Just imagine if it was around 1000 steem.. what would I have done
It's really scaryyy the ability of one to lose one's fund due to a simple mistake
Decentralisation is one of the main reasons Cryptocurrency attract some people, that idea of begin in control of your money is really good. You have explained why Blockchain need desensitizing in a very good way.
Yes bro I really appreciate the fact that you read my work. Decentralization has gotta be the best thing to happen in blockchain technology because just see where we are today. Things like cryptocurrencies, cryptography were all born from these two concepts and seem to be interrelated
Yea and I am glad I did.
Blockchain and Decentralization have become technological concepts that cannot be separated in this technological age.
Really nice Entry there
Although decentralization has helped by making crypto-currency transactions untraceable to hackers to our advantage, it has also made it impossible to impossible to reverse mistake when made.
Good luck on your entry