Crypto Academy Season 3 Beginners' course - Homework Post for Task 2: Decentralization-A Detailed Explanation

Homework Task-2
(1) Write the definition of blockchain. And how our data on Blockchain is protected from hackers. ? And write details about Data, Hash and Previous Hash tag and explain through screenshot.

OR
(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)

OR
(3) What is a block explorer? And what is its purpose and use? Search for different cryptocurrency block explorers and list them below. At least five different crypto currencies. Also explore the transaction of a crypto coin on block explorer and explain with the help of screenshot.

DEFINE DECENTRALIZATION.

In blockchain, decentralization refers to the transfer of control and decision-making from a centralized entity (individual or organization) to a distributed network.

Decentralized networks strive to reduce the level of trust that participants must place in one another, and deter their ability to exert authority or control over one another in ways that degrade the functionality of the network.

Decentralization is a sliding scale and should be applied to all aspects of a blockchain application. By decentralizing the management of an access to resources in an application, greater and fairer service can be achieved.

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DESCRIBE THE ADVANTAGES AND DISADVANTAGES DECENTRALIZED SYSTEM.

DECENTRALIZED SYSTEM

Advantages of Decentralized system.

Reduce Hackers: Some believe that decentralized markets can greatly reduce hackers because there is no single data resource that they can attempt to infiltrate; though recently this has been proved untrue.

Transparency: Decentralized markets can allow for transparency between parties, especially if they use technology that ensures all parties share mutually agreed-upon data and information.

Freedom from third-party: Many users of the decentralized virtual markets perceive their lack of regulatory oversight as a benefit—or, freedom from third-party handlers.

Absence of intermediaries: The absence of intermediaries could result in lower transaction costs than in markets that are regulated.

Disadvantages of Decentralized system.

Lack of oversight: A disadvantage of this lack of oversight, however, might be that there are no governing authorities to monitor transactions, offer assistance, or provide a legal framework.

More financial transactions are conducted: As more financial transactions are conducted via decentralized markets, they can pose challenges for regulators and legal enforcement. In comparison, centralized markets give regulators a clear path for taking action, if necessary, regarding trades that might be suspect.

IN WHAT AREAS OF LIFE CAN A DECENTRALIZED BLOCKCHAIN BE HELPFUL?

Health Care sector

By securely maintaining and efficiently distributing patient data is one of the ways in which blockchain is currently transforming the health care industry. Enabling doctors, clinical researchers and pharmacists to access secure and reliable electronic health records, blockchain platforms facilitate managing extensive medical records while ensuring personal privacy and regulatory compliance.

Blockchain can help provide a secure platform that offers its users the option of smart contracts and traces certain prescription drugs from the manufacturer to the patient’s doorstep. By utilizing a blockchain network, each step on the process is able to be stored and time-stamped.

Traveling sector

Traveling opens minds, brings about greater understanding and is usually a rewarding experience. At the same time, tourism is a powerful economic force for many nations around the world.

Blockchain allows for transparency, efficiency and convenience to be put squarely in travelling tourism industry.

Travel is a social engagement, after all, so it seems reasonable that blockchain-based travel platforms would take shape as social networks. For example having a big hotel you can open a booking platform of accommodations for different people rich or poor, and people can still gain tokens for it will make the platform very active, and by this you earn huge amount of money.

Blockchain enables the creation of unique travel experiences while becoming independent from external centralized sources that can manipulate information to your costumers.
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banking sector

Using a blockchain initiative, banks track financial transactions and combat fraudulent activities and make for a better banking system.

Bank can open a blockchain platform for it's users to create a smart contracts that becomes activated when they accept the bank's conditions, which means electronic automated payments and deposit can be done when parties in a transaction also accept the same conditions.

That is banking can be made at the relaxation of your homes and offices.

Efficiencies in the world of insurance

Blockchain-enabled smart contracts also have the potential to revolutionize insurance claims by ensuring only valid claims are paid out. For example, the blockchain would know instantly whether multiple claims have been filed for the same accident. And when conditions have been met for a satisfactory claim, payment could be triggered automatically, without any human intervention, drastically speeding up the resolution of claims.

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Clearly, blockchain technology is still in its infancy, and has a long way to go before it can be considered even close to mainstream. Yet these examples show how industries are beginning to wake up to its advantages, and, as the technology matures, we can expect to see even more companies investing in blockchains.