Hi All!
This time I want to make a homework post given by professor @yousafharoonkhan, about Blockchain, Decentralization, Block explorer.
The tasks I chose this time were:
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)
Before discussing decentralization, we must first know what blockchain is because decentralization and blockchain cannot be separated. Decentralization has many meanings, but what we will discuss today is blockchain decentralization so we must understand Blockchain first.
Blockchain technology consists of a combination of two words, namely block and chain. Blockchain is a ledger that will store every data, hash, and hash of the previous block. Blockchain will create interconnected blocks to execute each transaction. Blockchain is a digital data storage system technology, and the blockchain itself is connected through cryptography.
While decentralization is a technology that allows each server to be connected with the same role, namely by forming a peer to peer network. It aims to track every data, if one server is down, it will be backed up by another server.
Decentralization can also be interpreted as a system that is held together with the concept of transparency in every transaction. A decentralized system will not be according to individual wishes because everything is decided jointly without being able to impose the will of each individual because all data is stored together and the data stored is all the same, there will be no different data. Anyone on the network can see all the data stored on the blockchain.
Decentralization has several advantages compared to a centralized system, but behind the advantages there are also disadvantages because there will not be a perfect system.
Among the advantages of a decentralized system are:
The data of each individual is well protected so that it is not possible to hack it, but this is different from the centralized system which allows it to be hacked and published to unwanted parties.
Fraud will not apply in a decentralized system because all data is stored transparently and interconnected.
The decentralized system also allows us to buy and send assets without third parties at the speed of a fraction of a minute with confidential data.
Among the disadvantages of a decentralized system are:
Everyone allows to transfer their assets to other owners with secure data, meaning we don't know who is transferring and who is receiving so that it allows criminals to extort someone's wealth or make transactions for drugs and so on.
If there is an error during the transfer due to negligence or other reasons, then we will not get our money back. We may be able to ask the person who received our money because of a wrong send to send our money back, but this is not the case in a decentralized system because we don't know who received our money.
We know that decentralized blockchain is already in our midst and has helped solve various problems, such as sending money abroad, storing money independently without the need for a third party or losing money due to negligence like what happened in Indonesian banks recently.
So we can conclude that there are many areas that Decentralized blockchain technology can help. As the professor has said, but I have to explain my own version. Banks are the most useful sector in terms of using a decentralized blockchain system, because with this system, there will be no customers who suffer losses or lose money suddenly without being confirmed or accounted for by the bank.
Recent events in Indonesia have shown how important a decentralized blockchain system is applied in conventional banks, decentralized blockchain is not to replace the existing system, but rather to complement the existing system. We do not know where our money is used by the bank, nor do we know any information about the bank because of the centralized system they use. This is very possible for abuse of authority and money, it could also be hacked by hackers with above-average skills to then steal money.
In addition, the political and election sectors are also very important to use this decentralized blockchain system, with this system we can minimize fraud that occurs in the realm of elections. It is undeniable that every country must have its own story about the world of politics and their elections such as the Russian hacker who made Donald Trump lose even though this cannot be proven, or the victory of the Indonesian president Jokowi over Prabowo Subianto thanks to the help of the election supervisory agency.
I think it is time for a decentralized blockchain system to be implemented in our lives, there are many sectors that really need this system but are opposed by the authorities for fear of not being able to do what they want anymore.
Blockchain and decentralization are very important for our daily life today, we can transfer money all over the world without depending on other parties. Apart from that, decentralized blockchain has some advantages and disadvantages but we have to accept it.
And in this era of globalization, it is time for the world to recognize that we do need a decentralized blockchain for our daily lives, for banks, hospitals, land, politics, elections, and more.