Introduction

Source

Question 1:

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

• Market Decentralization
• Political Decentralization
• Administrative Decentralization
• Financial Decentralization

Describe the advantages and disadvantages of a decentralized system.

Advantages of a decentralized system are seen below.

• Fast decision making:- You will agree with me that making decision in a decentralised system is much faster than in a centralised system this is because in a decentralised system decision making is in the hands of all members.

• Equality:- Here everyone is equal before the law, no one is greater or bigger so everyone is treated the same way.

• Less stress:- Unlike the centralized where every decision making and planning is at the top, in a decentralized system there is no stress as everyone is involve in all the doings.

• Security:- security is one of the features in mind while developing a decentralised system hence is always very difficult to hack.

• Accessability:- To access a decentralized system is easy and can be done from any where around the world. Unlike decentralized that may be limited to certain zones due to manpower or resources issue.

• Transparency:- Every transaction carried out in the decentralized system can easily be seen by other users of the decentralized system hence this helps to reduce the act of fraud that is been carried out in a decentralized system.
  
  

Disadvantages of decentralized system are as follows:-

• Problem of Trained personnel:- Due to insufficient training given to users of the decentralized system, most of it's users will not be able to use the system well to have an efficient solution.

• Lack of Coordination:- The coordination process in a decentralized system is really very difficult this is because everyone has equally right and can do what the want to do.

• Abuse of power:- Since there is no room for check and balances in a decentralized system, you will agree with me that this process will lead to abuse of power.

• Cost of Operation:- To operate a decentralized system needs a very high and sophisticated equipment and this is very expensive to afford hence the cost of setting up a decentralized system is high.

In what areas of life can a decentralized blockchain be helpful?

• Fund Tracking
• Health
• Banking
• Data Storage
• Election

Fund Tracking:- Tracking of funds will be lots more easier with a decentralized system put in place. Due to the fraudulent acts of our leaders today if a decentralized system is adopted and monitored we will be able to trace our resource hidden by this cruel leaders.

Health :- If adopted in the health sector more lives will be saved on daily basis. I have discovered that there are so doctors who will never administer treatment unless a particular amount of money is deposited, if a decentralized system is used in the health sector I believe more people will prefer saving the life.

Banking :- For banks the consumption of precious time on queue will totally be eradicated and the act of fraudulent too will be removed completely. This is because decentralised blockchain is but with security in mind.

Data Storage:- Records of people will be properly kept and will not be erased completely. For instance some part of my country does not have their names registeredd in the NIN hence they are not counted as Nigerian when it comes to census.

Election:- Once a decentralized system is adopted in any election, we are sure to see a very free and fair election as everyone concern will be seeing the sites as it proceed.

Conclusion

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