[Decentralization] - Steemit Crypto Academy Season 4 - Homework Post for Task 4

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).

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Ans:-Decentralization can be defined as the structural management of any assembly, in which the authority and decision-making of the assembly is controlled by a group of individuals who are members of the assembly, whether privately or government-owned.

Decentralization is the inverse of centralization which is the control of an organization by a single person or government body responsible for making decisions in the organization.

Decentralization gives fair and equal opportunity to every member to be able to express his opinion or give his own conclusion on a matter before taking a decision.

Whereas, a centralized system looks like a military regime of government where we all have to follow their decision where we love it or not and are not able to properly use our citizens as we love.

Decentralization in modern technology is a cornerstone on which cryptocurrencies are built. This feature in the technology allows transactions to be performed with no interference from a third party.

Blockchain which is the lager to record all cryptocurrencies, also works under the technology of a decentralized system.

With cryptocurrencies, a decentralized system is far superior to a centralized system because the governance of the blockchain of any token is maintained by decentralization and is protected by a decentralized system.

Advantages of Decentralization:-

The decentralized application system is managed not by a group but by all users of the system, making it possible for all users to contribute to decision making.

Transaction fees are very low in decentralized application systems as no intermediary is required before the user can make transactions, when compared to centralized application systems the transaction fees are very high as it involves intermediaries when it comes to transactions Is.

All transaction activities in the system are very clear, this will make it very difficult for any dishonest transaction activities in the system.

Since users in a decentralized system have complete control over their own assets, it becomes very difficult for scammers or hackers.

Since the system is not managed by a group of people but by all the users, it helps in the development of the system very fast, as each user gets a chance to run their activities, it allows the users to create a righteous activities. will help. In the second to make substantial profit and it is going to help to improve the system.

DISADVANTAGES OF DECENTRALIZATION:-

The account cannot be recovered in a non-custodial system where certain account securities are used. It is more common in the use of key phrases, once it is lost the account is gone forever.

This can happen when you must change your devices and you might have forgotten to back it up completely or even forgot where you have backed it up.

In this type of system mismanagement of funds is likely to happen simply because the assertions are at the owner's own disposal, for that matter at any time he feels he can spend it without any stress.

Using this system comes with extra caution and awareness. This is because since you are your own boss and the security of your account entirely depends on you, you will do everything possible to hide it from anyone else.

Money cannot be retrieved if it is sent to the wrong address or account. For this reason, extra care is always taken while transacting in this system.

In what areas of life can a decentralized blockchain be helpful? (write in own words).

The applications of decentralized blockchains seem to be endless. Its initial application stemmed from the cryptocurrency and banking sector.

However, with every passing day, various sectors like transportation, law, waste management, entertainment, supply chain, education, gaming and many more are getting engrossed in this amazing technology.

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Education

With blockchain technology, educational institutions at all levels can make it easy and timely to verify results, apply for transcripts, etc.

Real estate

With blockchain, the use of paper may face challenges. The process and ambiguity of buying and selling assets is greatly reduced. In place of using paper, property title can be easily transferred or obtained through the blockchain network leading to a transparent process.

health care sector

This is relevant in health care where information related to medical history, vaccination schedule etc. is very important especially in this COVID 19 pandemic. It can give quick and reliable data in case of emergency.

Insurance

Blockchain on-chain technology can be implemented in insurance through the use of smart contracts. This allows customers and insurers to manage claims in a more transparent manner. This is done by storing the contract on a blockchain and validated as and when required.

Election

With blockchain technology, exercising one's franchise can become more comfortable and more transparent. The high security involved in such a system could make it impossible to change the number of votes. Thus by using a decentralized system, election rigging and other expedient practices can be reduced.

food industry

The tracking of food ingredients from where they are produced to the various stores where they are sold has been greatly enhanced by blockchain technology. It is fascinating that now one can trace the food items from their origin to the final destination. It thus brings a sense of security that one is well aware of what one is eating. In other words, it helps to know the footprint of the food item.

Conclusion

With advances in technology decentralized platforms can make our lives a lot easier but there are still significant problems with anonymity and theft. I understand what decentralization means and I thank Professor @yousafharoonkhan.