Heya Steemians, I hope you are doing great? This is my submission to Professor @yousafharoonkhan @shemul21 and @nane15 for Beginner's Task 4: Blockchain, Decentralization, Block explorer.
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Question:
(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)
Decentralization
The word "Decentralization" means the process in which a system or a platform exists without any central authority that controls the activities on the decentralized system. Now let's look at what centralization is all about. As the name suggests "centralization", is a system in which the entire power is focused on a certain place called the centre where every decision is been made.
Therefore a decentralised system is basically the opposite of a centralised system since the "de" placed before centralised means not so making a decentralised system any system or any platform which have no specific centre from which the activities performed on the system are controlled.
In summary, we can see a decentralized system as a system that does not have any central authority which controls the entire system. Everyone using the system is completely free from the order or restriction made by other users. Note also, that no individual will sit and then decide to make a law and then expect people to obey. This implies that everyone in the decentralized system is completely free to do whatever he or she wants to do without interference from any other user.
Advantages of Decentralized Systems
Here I would be listing ut a few importance of a decentralised system
Equality: This is one of the greatest attributes of a decentralised system. Remember that all users have equal rights and no individual has power over the other to control them and the things they do on the platform.
The decentralized system is safe and secure and the security system of the decentralized system is higher and complex as compared to that of the centralized system.
-When it comes to matters of privacy one thing I can say is that a decentralized system is so private that only the creator has the access to his or her data and can edit or change the provided what has been provided.
- Transparency: Fraud can easily be traced in this type of transaction since almost everyone can see the transaction carried out on the platform. Take for instance when you transfer steem from one wallet to another, in the history space on your wallet it will be recorded that you transferred steem to a certain username and any other persons who view your wallet will see the same.
Disadvantages of Decentralized System
For every system that has advantages, it will obviously have its downsides which are its demerits and they include;
Lack of Trained personnel:- Members of the decentralized system, are not trained properly as to how to work with the system for an optimal solution.
Abuse of power:- You will agree with me that since there is no check and balances in the decentralized blockchain, there will be lots of abuse of powers.
In the case of establishing a decentralized system, the development and the management of one is expensive and time-consuming to establish, and very few people are able to afford these expenses.
Fluctuations of prices of assets in the decentralized system can be of a big disadvantage since you don't know when the price can fluctuate.
What areas of life can a decentralized blockchain be helpful or is needed?
The areas in which decentralized blockchain can be helpful are numerous, I will be listing a few of these areas below.
Banking Sector: if the decentralized system is adopted in the banking sector then this will surely increase the efficiency of the banking system as users of the decentralized system can make transactions easily at any time and at every place without any wastage of time.
Health: The health sector is another place where I think the decentralized system should be adopted because records of patients can be easily accessed by any health professional all over the world. It will even be easier to find a better doctor who is a specialist in the sickness the patient is suffering from.
Election: Since most often than known, elections in our various countries are been rigged, it is also advisable to adopt this process as it will display all information to all those concerning hence there will be no room to rig the election again.
Special thanks to @yousafharoonkhan for a wonderful lecture.