INTRODUCTION
It is a privilege to me to once again participate in the lecture and continue the task in the Cryptoacademy Beginner Course Task-2 on the topic Blockchain, Decentralization and Block explorer.
On this lecture, the task I chose to answer is: 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)
From here, I will go straight to answer the task given;
DECENTRALIZATION
Decentralization can be defined as system which grants users the liberty to express their ideas and make their own decisions without asking for permission from any central authority and being from threat and accusations.
This can further be explain as a system which grants individuals to express their rights and freedom without any third party restrictions that could imposed limitations on him/her on the process of discharging or enjoying his rights.
Decentralization disburse the centrality of power control to empower in individual to encourage them to be able to deliver their sense of wisdom in their activities towards executing their job or work to make it effective and efficient without being bond to any central or third party policies and rules.
In relating to the blockchain network, decentralized blockchains are been operated without any central interference and this makes it an absolute independent body which also enables transactions to be performed without any central authority grants and approval.
For instance, the Press Media (journalist) have been granted some decentralized freedom to execute their job and been autonomous when making their decision.
Unlike centralization whereby power is been empowered into some particular authority or governor of an entity who imposes his policies, laws, rules and regulations to the followers or users to for follow and those who go contrary against it shall be subjected to some penalty.
ADVANTAGES OF DECENTRALIZATION
Every intervention comes with a positive and negative impact but below are some of the merits of decentralization;
- User Independency: This system has make users independent from any central regulations and every developer has the power to run his own system without any interference.
- Effective Security: The security is enforced in situation of a blockchain network, fraudster or hackers will not be able to enter into it. This will enable prevent all kind of fraud and criminal activities.
- Equality in Services Delivered by Users: In this kind system, users are treated equally. For instance, there is no power distribution that will discriminate between new users and old users. The system is transparent and all users enjoyed equal rights.
- Easy and Quick Transactions Process: Ever since the system does not rely on central authority for permission and approval of any transaction, it makes it easier for users to be able to perform transactions.
- It Enables Privacy: The decentralized nature enables privacy since individual user is entitled for the operation and running of the system.
The user will be able to make any update and can change his data or policies to suit the system at his own convenience. Also no data can be alter by any third party and therefore the privacy is enforced.
DISADVANTAGES OF DECENTRALIZATION
Decentralization on the other way have some negative impacts and some of the disadvantages are;
- Irreversibility of The Password Keys: This is one of the serious issue with the decentralization, in cases in which a user missed or lost his keys in any form hence he will not be able to reverse it.
The mode of the security of the system is the password, and if this cannot be reverse then that is a bad aspect of the decentralization
- Inadequate Decisions: There are a lot of variations in our IQ and intelligence, so with collective interference we can come out with adequate decision.
But the decentralization system make users who are not smart and intelligent to passed decisions which in some in stances are inadequate, irrelevant and immature.
- Irreversibility of transactions: The system is develop in such a way that it is not possible to reverse funds when a user mistakenly transfer funds to a wrong user wallet or wallet.
Since there is no overseer or central authority to check the system it is not possible to be reversed.
- Price Fluctuations: In situations where prices fluctuate, it affects the assets available to users. The decentralized nature harm users’ assets in times where the prices increased or decreased.
- Expensive to Run: The decentralized system encourages individual intervention system which in one way is very expensive to run for individual manage financially. This makes it difficult in cases when a user has no sufficient funds to run the system.
In what areas of life can a decentralized blockchain be helpful?
The decentralized blockchain are been recognized and if adopted by many institutions and sectors to run their services, it help facilitate the running of their projects services.
Some of the sectors or institution or areas if adopt the blockchain protocol are it will be beneficial to them:
Banking Sector
The financial institution thus the banking system have faced a lot of fraud related activities and if any way have adopt the decentralized system will help them resolved those issues and also encrypt all their security and bring it under control.
Also, how centralized the banking sector is, individuals in some instances have to queued to performed transaction, if they adopt the decentralized system will enable them to facilitate their services at their own comfort.
In General Elections
The decentralized system exhibit a quality of transparency. Due to this attribute of the system, when adopted in general elections, this will help demonstrate a transparent and fair election results for contestants and the nations in general.
Also, when this kind system adopted, this will help curb all election related violence such as snatching of ballots, ballot boxes and also scattering of election polls. The system will organize a channel to be able to deliver their franchise during such times.
Land Acquisition and Registry
Researchers in Ghana have argued that about 80% of Court Cases in Ghana is Land Acquisition and sales. The decentralized system when adopted in this sector will help curb all this arising issues.
The system due to its transparency and security qualities will be able to design a database that will keep records of land transactions, available and occupied land and also facilitate deeds registry and conveyancing.
The decentralized system in this way will have help solve all the land related issues in the country and develop peaceful economic atmosphere.
Above are few of the areas that can adopt the decentralized system to facilitate their activities.
Hi @salim15, Thank you for taking interest in the 2nd Task of the Beginners Fixed Class. Your grades are as follows:
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The source of the photo is entered incorrectly, please correct it.
You didn't put the questions you took at the beginning of the article.
Pay attention to all the questions given, rules, and guidelines before doing homework.
Thank you!
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Please check from second paragraph, I have stated the question as it is given, well I do as you. Thank you
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