(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 process that gives all its users worldwide the liberty and sovereignty to make decisions on their own without anyone's consultant is known as Decentralization.
Every user has been entrusted with controlling all the activities regarding their work at all times they want without any restrictions or regulations from others.
It has served as a great aid to halt a state whereby a person or group of people formulates rules for others to follow whether the rule is bearable or not; Again, in this kind of system, you lack access to others' accounts activities.
With centralization, the dealing of all the activities is carried out in an organization under a central body. In centralized systems, all the sovereignty has been committed into a single body, so every user has to accept and endure every decision the organization
Describe the advantages and disadvantages of a decentralized system.
Merits of a decentralized system.
Security is high:
- Due to the highly encrypted nature of blockchain, hackers find it very difficult to pave their way through making it most secure; this system has widely helped users prevent all sorts of scams.
simple transaction making:
- Sending and receiving assets is made easy and faster for users since no third party is involved in approving.
Equality:
- In decentralized systems, every user enjoys equal rights and authority, whether you are a new user or ancient, possesses high capital or not. Every user enjoys the same security as well.
The network is managed by its users:
- With a decentralized system, there is no Supreme manager who sees through the system's activities but instead shares its authority with its member making all users bear the same responsibilities. Because no main body regulates the system, they are anonymous to prevent hackers.
Demerits of a decentralized system.
Transactions are irreversible:
- the system does not involve any central body governing system to make approvals to all the activities. Knowing this, if a wrong transaction is made, assets will be lost forever. It is impossible to get back your funds.
Risk of losing account:
- Only Users possess the private keys to their account, and so when, unfortunately, a user loses the keys, the account can not be managed by the user any longer. Hence loses the account forever since it's not retrievable without the keys.
inaccurate decisions
- We know all people aren't equal, and so with this, some users will have more experience and others with a low one, and so users will deal with conditions according to their knowledge of it; this sometimes causes users a significant loss. However, users with knowledgeable experience will always be user-friendly and will curb losses.
In what areas of life can a decentralized blockchain be helpful? (write in own words)
The markets:
- already trading goes on in the market so advancing to use a digital money where decentralized will aid a lot because users will not have to carry physical money which will avoid risk of robbery.
In schools:
- when decentralized blockchain is introduced into schooling system, I believe the monetary activities are will be running smoothly safe and secured.
Banks:
- Introducing will prevent fraudulent actions and will save time which would have been used for errands.
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