(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)
Define decentralization
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Decentralization is the division of official activity of a specific company, set up, application, society or market structure from just one person or workplace to several individuals.
It may be related to the majority side of life as it deals with decision making by many people rather than one person as the matter is probably centralised.
Thus decentralization is an alternative to centralization.
Decentralization within the cryptocurrency world is the division of rights to a token or coin by all users, rather than one individual, the creator of the token, or perhaps its cluster or company.
Decentralization is achieved with the employment of a blockchain network that works with a collaborative algorithmic rule that works with privacy.
The bitcoin blockchain was primary because it was the primary cryptocurrency to be created, and it manifested the ability to manage the currency over multiple individuals and this made it more practical with the control of its value as the blockchain allows anyone to own their currency. will allow it to be. Provides the opportunity to become the owner of the network.
Before we can understand about diffusion, a centralized system seems to be the easiest. I cannot imagine a countryside where its system does not have the right to keep individuals in power because they are not following democracy.
A centralized network requires a lot of policy from its user which should be followed even when it is not convenient or once these policies may go wrong. Provides a decentralized, answering all or none network controlled by multiple computers, where each progress generates its own knowledge from the previous block, conversely allowing each enduser to create its own policy and maintain its own privacy.
Describe the advantages and disadvantages of a decentralized system.
Advantages:-
Security: A suburban system is when there is high security and low risk of quick access by hackers or faulty online problems because the whole system is not under any one management.
Decision making: A suburban system makes incredibly quick decisions because the ideas of an isolated entity do not need to be sent to a central authority for verification, but rather users experiment with their ideas to get quick feedback. There is a chance to do so.
Transparency: Since blockchains are not hospitable to everyone, resulting in {they square measure | They are} ledger and jack of ton are related within the confirm transaction method and any individual miner can verify these transactions. it's not that hard. Cheated.
Power spreads: There is equality of power because no member is greater than the one who exercises power.
Promotes the growth of the organization: Each person will use the power to develop and manage their resources. These skills can be helpful in expanding the system. This additionally creates healthy competition among the sub-units.
Disadvantages:-
For everything that has a plus, there is an obstacle. Therefore, the latter section measures some of the disadvantages of the suburban system.
Cost Intensive: Its organization needs tons of cash.
Lack of coordination and order: Since power is delegated to various individual sub-units, it becomes difficult to coordinate the overall organization of the total system when the time comes.
Cash can be lost once transferred to the wrong account.
Lack of expertise: The class measure of most people usually results in a lack of qualified person, and once power is distributed evenly, it is given to unskilled people and each person is related to all activities.
Conflict: In decentralization, additional pressure is put on the divisional heads to get profit at any cost. Most of the times there is conflict between the managers in completing their new profit plans.
In what areas of life can a decentralized blockchain be helpful? (write in own words)
Health:-
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here a data record linked to patient history will be created so that doctors can access their information neatly through a system called health blockchain.
Trade:-
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For trading, a highly decentralized system has a high position, the seller has the flexibility to sell their assets to the person they need, sell or buy, while the identity is not disclosed
Politics:-
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In the political arena we can mention elections because here electoral fraud will be eliminated through decentralized blockchain. whose system knowledge generates high dependency in backup
News:-
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The news system is managed by a public or individual entity, usually managed by a centralized network that does not allow its informants to publish the full truth of events provided in any given area; To be in the meantime means to be dishonest and corrupt again and again. For these reasons, it is believed that a decentralized technology would be the most effective structure among news organizations, as each newsman would assume management of what he published by showing his own clear version of the facts he published, while requiring a testator. was not. Is. Change its publication.
Conclusion
Centralization has created a lot of error with its way of approaching the system, however if we are able to adopt the system then decentralized is there to fix it. The difference between the value of the currency of different countries is often resolved if the whole world pays for a cryptocurrency that works on a decentralized system that gives everyone the right to own it.