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Hello guys! What's up these days?
I hope that all of you will be good and I pray for Allah to keep all of you healthy, wealthy, and wise. This post is all about the Task 4 of Steemit Crypto Academy. This is my first entry into the academy and I wish to provide quality content in season 5 of the academy. So, have a look on my this task.
I am going to attempt task number 4 from the lecture post by @yousafharoonkhan. Happy reading!
Question
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)
Today, our topic of discussion is Decentralization and its impacts on daily life as well as its effect on blockchain technology.
First of all, we will put some light on the word 'decentralization'. The word decentralization contains its own meaning in itself as the word 'de' refers to 'not' and the word 'centralization' means 'involvement of center'. So, the whole concept beyond this word is that the systems work without the involvement of the central controlling unit or the central authority, and this process is known as decentralization. This concept brings a great evolution in blockchain technology. The blockchains are developing day by day on the concept o decentralization and making progress day-by-day.
The systems that are based on decentralization are called decentralized systems. All the activities that are performed in that blockchains are without the involvement of the central authority. The users of the decentralized systems are free in the blockchain and all their activities are under their own control. There is no need of seeking permission from the central powers to do any activity on the blockchain.
All the transactions and funds are under the control of the users on their own and the details of the transactions are also visible to the users only. The central powers are not able to access those sensitive pieces of information and that's the benefit of the decentralization-based blockchains.
As we have discussed the concept of decentralization in the above section so now we will discuss some advantages of the decentralized system which it gave to blockchain technology.
The most important advantage of the decentralized system is these systems are user-friendly and the users are free to utilize the services that are available in the system.
The users can enjoy the taste of the blockchain as they are free to use the features of the system.
Decentralization acts as a bridge between the previous and the new users as they can coordinate with each other and perform better services.
The most impressive thing about decentralized systems is that all the transactions made in the decentralized systems are fulfilled without the permission of the central authority.
There is no involvement of the central authority in the transactions that are made on the system.
The data of the decentralized blockchains are permanently stored on the blockchain and can be accessed easily in the hour of need.
The funds and transactions are under the hand of the users.
Decentralized systems are less susceptible to hacking as compared to centralized ones. The reason is that, unlike the centralized systems, there is no specific center in the decentralized systems.
Now, have a look at the dis-benefits of decentralized systems.
The most hilarious disadvantage of decentralized systems is their misuse. Many of the spammers get benefit from the decentralization of the systems and do many cybercrimes.
Another misuse of the decentralized system is that it is used for doing money crimes and money laundering.
The decentralized system is complicated to manage as its establishment is very much expensive.
The currencies that belong to the decentralized systems have very many fluctuations and this thing can harm the new users.
Besides the wide applications of the decentralized system in blockchain technology and the digital world, there are also a number of its advantages in daily life. It has made all the areas of life so impressive that each mind is attracted by its involvement in the daily life systems. Some of them are described below.
- Record Storage:-
The decentralized systems act as permanent record storage as the data that are provided to the decentralized systems is permanently stored in the memory of the system and is irremovable. So, in this way, the users can easily access the data whenever they want. Moreover, it is very easy and simple to store data on decentralized blockchains.
- In Banking Field:-
The decentralized system is also very much useful in financial management. The traditional finance system is centralized and the funds and transactions in these systems are under the control of the central authorities or governance in the form of banks. The banks work under the influence of their owner and the transactions and funds are under the hand of the bank officers. They can access the user's funds and this thing seemed to be something strange. They can also modify the transaction details and sensitive information related to the transactions. But, the involvement of the decentralization in the banking sector could be a very impressive step in the development and progress of money management. The funds could be managed more securely and in a good manner. So, this is the role of the decentralized system in the banking areas.
- Medical Field:-
Besides all the fields, the concept of decentralization is also proved to be very great in the medical field. And I think that it is a need of time to develop our medical field on the basis of decentralization. By the involvement of decentralization in the medical field, the patients can seek the cure of their disease just by searching its disease on the system. The cure that is given by the doctors to the patients containing the same disease can be easily accessed by all the members of the system and in this way, our medical field can progress positively. Moreover, the patients can also contact doctors throughout the globe and can discuss their problems with the doctors. So, this thing is also very much impressive.
- Elections and Politician:-
Corruption in the political election is a very big problem in Asia especially India and Pakistan. By the involvement of decentralization in the political field, the chances of corruption could be minimized. The countries can develop their traditional election system into electrical election system by which the public can express their likings more clearly and the chances of corruption will be minimum. Moreover, decentralization could be also a very good step for any government as all the politicians can manage their data easily in the decentralized system and the government can also put a strict eye over the working of the politicians.
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