REPOST - [Blockchain And Decentralization] - Steemit Crypto Academy Season 5 - Homework Post for Task 4
This is a repost of my previous task link
(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)
ANSWER :-
decentralization
The phrase decentralisation is derived from the concepts of power and authority, which are necessary to comprehend it.
The elimination of central authority is seen when authority and power are distributed to each individual and each individual has the power to accomplish the work in their own way.
Similarly, the cryptocurrency's foundation and core essence are focused on decentralisation, with each individual being free of third-party concerns while trading is only encrypted and decrypted between traders.
Crypto is the best illustration of a decentralised system because every trader is free from central control and has the authority to purchase and sell without the use of banks.
It describes the many ways in which decision-making authority is distributed among different levels of the organisational hierarchy. In other terms, it refers to the dispersal of authority, responsibility, and function away from the central site.
Supermarkets, hotels, and dress showrooms are all examples of decentralised professions. Because it is nearly difficult for one individual to focus on more than 100 branches, many of which are located all over the world, as an example, a hotel.
When a person owns a chain of hotels, he focuses on employing decentralised structures so that local hotel managers and assistants are authorised to make on-the-spot correct judgments to address problems, varied complaints, and a variety of requirements.
Because all sovereignty has been surrendered to a single body in centralised systems, every user must accept and endure every decision made by the organisation.
Describe the advantages and disadvantages of a decentralized system.
THE ADVANTAGES OF DECENTRALIZED SYSTEM :-
The first and most important advantage of the Decentralized system is that you have complete control over your funds; you do not need anyone's permission to conduct any transactions. You're the boss, and you've got everything under your control.
Because it permits various parties to administer the network, a decentralised system solves trust difficulties. Users also do not have to put their faith in central authorities.
Data is saved and cannot be altered. Transparency is high, and records are kept open at all times.
Everyone may see the transactions that take place in the network since they are public.
Transactions can be completed regardless of your location, which means you can send and receive funds from one country to another in a fraction of a second, without incurring a large fee or experiencing a delay in reaching the person with whom you transacted.
THE DISADVANTAGES OF DECENTRALIZED SYSTEM :-
Because there is no limit to the amount of money that can be spent, someone who lacks proper financial management can spend all of his money in a fraction of a second. Therefore, freedom sometimes necessitates limitation.
You must be well-informed on the decentralised system in order to operate it; else, you will make a slew of blunders that you will come to regret later. As a result, you must be well-informed, which may cost you money to learn, and hence old individuals and extremely young children cannot participate in the system.
You can spend your finances for crime and never be arrested because your personal information is kept private.
Users that want to participate in decentralisation must have extensive experience and be experts.
Running a decentalized application system has a significant operating cost, making it unsuitable for small systems with financial constraints.
In what areas of life can a decentralized blockchain be helpful? (write in own words)
EDUCATION :- I believe that the local system can be employed in the education system. The suburban system has the ability to facilitate inside the academic system's power. I am convinced that introducing the application into the educational system will assist to improve it in general, making work easier and providing a secure learning environment.
The data of students in a suburban learning system is unlikely to be lost because it is stored on distinct computer nodes that may be assessed at any moment and if any students require the data in the future.
During an election, reducing fraudulent acts while voting. The United Nations has launched a new project known as Followmyvote. This programme increases openness and reduces the incidence of election-related frauds. It is based purely on the decentralised blockchain, and it decreases election costs while simultaneously allowing for very legitimate online voting.
The patient database can also be appropriately managed via a decentralised blockchain. In the healthcare industry, this is correct. This is accomplished by dismantling the central authority that permits you to store patient information. When transferring patient records from one hospital to another, the Decentralized Blockchain system makes the process much easier and faster. The MedRec, which was developed by MIT, is a nice example. In the healthcare industry, the MedRec is used to verify that patient data is correct, confidential, and even legitimate when shared.
the market :- Already, trading takes place in the market, thus moving to a decentralised digital money will help a lot because users will not have to carry real money, reducing the risk of robbery.
Public Sectors- One sector that should benefit from decentralisation is the public sector, which is now centralised and bureaucratic. Government documents and essential services cannot be obtained without the use of bribery and corruption, hence decentralisation would assist to alleviate this problem.
CONCLUSION
In this lecture, we learnt what decentralisation is, how it can assist us, and the benefits it provides, as well as some of its limitations and several industries where it can be beneficial. Overall, it is advantageous.
Furthermore, the government will find it impossible to meddle with this system, which has been used in healthcare and blockchain technology, which involves the storage of monetary value using cryptocurrencies. Governments and central agencies are unable to manipulate these. However, decentralisation has certain drawbacks, including the potential for it to be used to promote fraudulent operations such as money laundering.
Smart contracts and the internet of things are two examples of fascinating use cases. It can also be used to protect personal identification and to store healthcare or medical records and data in an irreversible manner.