Hello fellows. How are you all?
This is @aizazghumman, here I am going to share my homework post on the topic "Blockchain, Decentralization, Block explorer" given by respected professor @yousafharoonkhan
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Define decentralization
For instance, if an organization has a decentralization system and have different managerial level( lower level, mid-level senior-level) every lower or senior-level individual are capable to decide without informing to a senior level authority. In this way, they can increase the speed of work and remove the limitations that may occur in the business operations in the first place.
Describe the advantages and disadvantages of a decentralized system
There are several benefits and examples that we can see in the real world that how the decentralization system is helping the organization. I will discuss some of the advantages are as the following
Freedom of expression: The most important thing about decentralization is freedom of expression. Everyone associated with this system has the opportunity to express his feeling or make decisions. They are not bound to get approval from a superior authority or any third party that can affect the decisions.
Distribution of power In this system: Everyone has the power to do the business as they wish. In fact, every lower or middle-level staff can make decisions without waiting for approval from superior-level management. So it gives complete power to everyone in the system to make a decision. On the other hand, in a centralized system, lower or middle-level staff are bound to accept the instructions that are given from a superior body in the organization. They are not free in making a decision or express their suggestion. In any way, they can't run the business activities without having approval from senior management.
Speed of working activities: In the decentralization system, everybody is free to make choices and can work independently. In a centralized system, everyone’s approach is restricted or very limited to a certain level. They are not fully authorized to make decisions and that's results in slow productions in business operations. While in a decentralized system, efficient work is possible due to freedom of decision-making.
Quick decision making: Due to freedom of decision making decentralized system makes the decision-making efficient and quick. It helps the lower and middle-level management to make good decisions.
Although, decentralized systems have many benefits but also have some drawbacks that are the following
Creates conflicts: In this system the body is not bound to a certain authority that creates conflicts between the lower level and upper-level managers. In this situation, everybody emphasis reaching their own goal rather than the corporate goals.
Increase the expenditures: Decentralised system increases the expenses within the organization because they need highly qualified talented individuals who can manage the system and work independently. So highly skilled and expert people have a high price in the market.
Difficult to coordinate: Hence it is clear that everybody is independent in the decentralized system, so it's very difficult to coordinate on a particular task or business operation. Every individual or team has its own agenda and perspective for a specific goal.
Uniform policies: Not being followed It is impossible to follow the universal policies in the decentralized system due to freedom of decisions making. It is a big drawback of a decentralized system that each member of teamwork and follow their talent and guts.
In what areas of life can a decentralized blockchain be helpful?
A decentralized block system has numerous real-time benefits that can help us in many ways
Voting system: Many countries are facing corruption and manual old-rated voting system. But decentralized blockchain voting system can enhance the accuracy and transparency of the system. No doubt, there are many ways that a manual voting system can be misuse and it does happen. So to stop this, the government can use a blockchain system to improve the efficiency of the voting system. In this system, we cannot hack or change the input information that we once install in the blocks. So it can really help the government for a fair and effective voting system.
For instance, Pakistan’s government is taking initiatives to reduce corruption in elections by bringing the blockchain technology for a transparent and fair voting system.
Food Safety: In the food industry, blockchain technology is making supply chain management more efficient and transparent. Also, it removes the middle man or third party from the supply chain operations. In addition, it also reduces the food waste from disaster. In fact, a big organizations like, Nestle and Walmart are considering blockchain technology to implement in their organization.
Medical industry: In today's world, the health sector has become the most popular industry. With blockchain technology, patients data is more secure than the manual record. To hack the blockchain data is not possible due to the decentralized systems because in blockchain technology blocks of information are connected with several interconnected servers. Every patient can have their password to access the data stored in the servers.
Regard
@aizazghumman