Hello everyone, hope y’all doing well. Going to go straight to the point and provide answers needed to the question provided by @yousafharoonkhan
First of all we will look at what is meant by decentralization. Decentralization referee to the break down of commanding services such as markets. This is almost similar to decision making and it takes the form of partnership because the presence of many other parties. Decentralization is the opposite of centralization.
Decentralization in crypto refers to the breaking down users tokens rather than one users token. For decentralization to be achieved, there is the need of use of blockchain . Bitcoin was one of the first currency that was made. Centralization system was the best before the discovery of Decentralization method. Centralized network required a lot of authorization from its own users despite its uncomfortable nature, the policy must be followed. There’s need for multiple computers so that each computer performs its task smoothly. Steemit a good example of a Decentralized system. And everyone has the right to grow.
Differences Between Centralization And Decentralization
•With centralization, the output is slow whereas output in Decentralization is faster and effective.
• Also, With Decentralization, There’s ownership to all while with centralization, there’s only single ownership.
•Decentralization allows every user make decision meanwhile, With centralization, decision making is done by one man just like sole proprietorship.
•Inaddition, there is privacy in Decentralization whereas in centralization, owners usually require to know all members.
Advantages and Disadvantages Of A Decentralized System
Advantages
•Theres transparency that is, there’s room for trust even when it’s not requested for and the policy makes it easier for members to make their own decision and also make it in the market. There’s proper management and everyone pays same amount as fees.
• However, there’s privacy as owners ID is not needed before any transaction can be done.
• Theres flexibility in management. Accounts are easily made.
• In addition, there’s division of labor. The output of earned is been distributed to members Equally with no differentiation and also there exist efficiency.
• Security. Large number of users a having the access to all users without the existence of theft.
Disadvantages
• when there’s a large number of owners, the cost of management will be high .
• Management will be difficult as each member will want to give their own opinion that suits them.
• The Decentralized system gives room for anyone to be owner of the authority but most of the time users are not well fed with information.
In what areas of life can a decentralized blockchain be helpful?
•. A Decentralized system will help in solving issues of banking which falls under centralized system. They have a way of spending
Votting
In order to solve centralized system, authority gives command and a Decentralized system needs to be introduced so that all members will vote with one identification.
Thanks for reading my task**