Hello Everyone! I hope you all are doing great!
In the task 4 of beginners course on steemit crypto academy professor @yousafharoonkhan explained concepts of Blockchain, Decentralisation and block explorer.
This is my homework regarding 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)
Decentralisation :
.png)
The word Decentralisation has its meaning in his own. The 'De' in decentralisation Means not and centralisation means an activity/organization is controlled by a single authority. So the whole word means Something which not controlled by a single authority or organization. It means decentralised networks, activities, organizations is controlled by various users and not by a single authority.
Also we can say that decentralisation is certain form of a structural organization where the authority at the top delegates important responsibilities of decision making, daily works/operations to the lower level authorities. It disseminate powers, responsibilities, etc away from the central authority.
In the world of cryptourrency decentralisation has its own value and importance, decentralised cryptourrency system means it is the system which exists with the blockchain without any specific controlling authority. It is controlled and maintained by its users and not by a single authority.
Each and every member of this system/blockchain have the decision making power so that they can take their own decisions based on their will and profit without any kind of pressure from any specific or individual authorities or organization.
In decentralised system every individual has equal power as compared to systems which are controlled by single authority. In decentralised system you'r independent and free to take your own decisions. Various computer systems from various parts of the world are linked to each other and operates a chain of block called as a Decentralised blockchain.
Advantages of Decentralised System
Now, we are going to dicsuss various advantages of Decentralised system as i mentioned earlier-
The biggest advantage i noticed is that our data is 100% safe in Decentralised system and as only the creater of the stored data have the power to make changes or edit the data.
The user in the system has complete control over his data in Decentralised system.
The Decentralised system is controlled by its users so there are no chances of system getting hacked.
All the users in the system are empowered equally so they can work with each other more passionately and confidently and also they can build/create their own reputation.
The security system of Decentralised blockchains is very safe, strong and private.
Decentralised system is an independent system. The users are free to take their decisions on their own will and according to their profit and loss as their is no single controlling authority the users don't need to hesitate while taking decisions and as they don't require anyone's permission to take their own decisions.
In decentralised system every users have same equall power so a proper co-ordination develops between the lower and higher authorities so lower authorities also get more and more opportunities for success.
Everyone will get rewarded based upon their quality of work.
Disadvantages of Decentralised System
Till now we have learnt about various advantages of Decentralised system. But decentralised system do have some demerits as follows:
The most important disadvantage of the decentralised system is it's volatility and disorders.
The transactions made on decentralised system are not as convenient as on centralised system. This is also another big blunder in Decentralised system.
Too much of Decentralisation can also lead loss of control from the hands of top management authority, as different departments of an organisation will start working as an autonomous unit in their own interests and profits only contrasting the overall interest/profit of an organisation.
Decentralised system is not cheap system, it is quite expensive in order of affordability.
The prices of the assets available in Decentralised system may fluctuate randomly sometimes this may result in profit sometimes it can cause users loss.
As the users of the decentralised system have the freedom they can misuse the system for their own profits and also this leads to serious crimes and loss of organisations.
So, this were the some advantages and disadvantage of a Decentralised system. If this system is handled properly and with dignity by its users then this system will have a very bright future in upcoming times.
In what areas of life can a decentralized blockchain be helpful?
The decentralised Blockchain can be used in various parts of a life. Using this system will bring transparency in different sectors. Some of them are discussed below:
Public Health Sector:
According to me this is the most important sector of our lives. It need to be transparent and our data in it need to be protected. Adopting the decentralised Blockchain system can bring transparency and privacy in this sector.
As the storage of data and records of a disease of a patient are easily accessed by patients and doctors in Decentralised health blockchain system no one can change or edit the data so the doctors in the worldwide can give patients proper medications.
Also this system can be very useful in supplying medical drugs and their marketing.
Banking Sector:
Adopting Decentralised blockchain system can bring transparency and safety in this sector too. This will put a very positive effect on banking sector. Adopting this system will increase the privacy as well it will also bring efficiency in banking transactions as compared to centralised system. In Decentralised blockchain system users can do transactions easily without any complex, time-consuming & confusing processes as they have to do in centralised systems. Users can easily do their financial transactions across the globe without any fuss with just a simple click as the users in Decentralised system doesn't need to take permission of Central authority and any kind of governance as in they have to do in centralised systems.
Data Storage:
This is one of the most important and valuable features of the decentralised blockchain system. In Decentralised system users data is more safe and private. As no one can edit or change the data in blockchain except its original creator. This system will be very valuable in business for maintaining records and data of the systems. All the users in the Decentralised system can easily access the data so they can get benefit by utilizing the records and stored data. In Decentralised system users can easily put data and store records this is also an important feature of the system.
Politics and Governance:
The decentralised system can be proved very useful in this sector as their is a lot of mess in this sector as corruption, crimes,etc .. things. The transperancy of this sector will benefit the ones country and world. So using the decentralised system can be a miracle in making this sector transparent.
Nowadays the politics in each country has become worsen because of corruption and frauds. In centralised systems the higher authorities misuses their power for their own benefits irrespective of harms that they are producing to the lower level publics. Using Decentralised system will serve justice and proper equal rights to the lower level. Due to this the percentage of corruption and fruads will reduce miraculously in the country and each and everyone will get equal rights to grow and succeed.
Also the data of ongoing government projects can also be stored at decentralised system for noticing the work progress and their behaviour. Also the corruption and fakeness of voting during elections can also be reduced by linking the system to the decentralised system. This will produce a positive impact on nation's dignity and wealth.
So, this were the some sectors where Decentralised System can be beneficial and make better developments in this sectors respectively. There are various sectors where we can adopt this system as well.
Conclusion
Hence we can conclude that, the Decentralised system means the system which is operated and maintained by its users and not by a single governing/controlling authority/unit. Every user of this system is free to use this system. The users of this system have their own Decision-making power and transactional rights on their own.
This system really have a very bright future!
That was all from my homework post. I tried my level best to explain it. Hope you all understood the Decentralisation, its pros and cons.
Thank You For Reading
@pratikjumle29