Hello friends how are you, I hope you will be fine and live a peaceful life? this is my homework post for the fixed introductory courses Task 4. Which is about Decentralization, Block chain, and Block explorer. Lets start our work.
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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)
Define decentralization
The word decentralization, as the name implies, is synonymous with centralization. As we know the word centralization is derived from the word center which means a point is defined as a system that is controlled by a single authority called the central authority.
Both decentralization and centralization are different from each other. In centralization, a system is controlled by a single authority or person.
An excellent example of a centralized system is the iPhone company, which manufactures the iPhone series, the headphones, Led, and iPhone watches as it is controlled by a central organization and single authority.
From the example given above, we can get a good idea of what is called decentralization.
Decentralization refers to the transfer of administrative power from the central authority to individuals. Decentralization is very different from centralization. In decentralization, the system is not controlled by a single authority. Here different people control the system well. In decentralization, each person is given a separate controlling power. In decentralization is a business structure in which decisions are made at different levels of the organization and people are generally given different options.
Some examples of decentralization systems are.
- Cryptocurrencies
- Steemit community
Decentralization speeds up decision-making and has a direct impact on system improvements. In a decentralization system, everyone has to accept responsibility and improve the system.
The table below shows the difference between decentralization and centralization systems.
| Decentralization | Centralization |
|---|---|
| In decentralization, the system is controlled by many people( no main authority) | In centralization, the system is controlled by a single authority. |
| It's easy to make a decision | It's difficult to make a decision. |
| Its output is faster and more efficient | Its output is slower. |
| It would allow everyone to decide together | Only one person has the power to make decisions. |
Describe the advantages and disadvantages of a decentralized system.
If something has all those advantages, it also has some disadvantages. That is why we will describe the general advantages and disadvantages separately.
Advantages of Decentralization system
Decentralization has many advantages. We will describe the advantages separately. The advantages of the decentralization system are as follows.
Decentralization is a system in which all individuals have the power to make equal decisions.
This creates a secure line for direct communication between its users.
There is no need to go to a third person before completing a task, thus reducing stress.
In this, the trader can get his money whenever he wants, no one has any control over it.
The whole system is done in a very transparent. There is no malicious activity here and they are avoided.
The biggest advantage of a decentralization system is that its security is very secure and its data cannot be stolen. Our data is very secure here. It is very difficult to hackers to steal it.
One of the great advantages of the decentralization system is that no one's identity is revealed here and a certain type of password is used for the transactions.
Disadvantages of Decentralization system
while there are some advantages to something, there are also some disadvantages that need to be cared of. We can avoid losses if we know about it. The disadvantages of decentralization are as follows.
The biggest disadvantage of decentralization is that lost money cannot be recovered or identified. therefore, it is important for us to make sure that you identify the funds before transferring them.
Anyone who knows the password to our account can access our account. That's why it's important not to share your password with anyone else.
Introducing a decentralization system costs a lot of money.
One of the biggest disadvantages of this is that we don't know much about it and now we are losing out because of our lack of knowledge.
Lack of competency so users should perform all activities on their own.
Here are some of the disadvantages we have to keep in mind in the decentralization system.
In what areas of life can a decentralized blockchain be helpful? (write-in own words)
A decentralized blockchain will be very useful in various aspects of our life as it is our hope for the future. this is something that will help us to learn a lot in a short time. Lots of places where blockchain decentralized system works. And they are very useful to us. Here is where the blockchain decentralization system works are as follows.
Education
Blockchain decentralized system also applies to education system. Today, our education system in the world is not the same as it used to be . Corruption has taken place in our education system as well. This is because teachers and students are involved in corruption.
In our education system, rich students get certificates by paying money and poor students are left. And the poor students who work hard are left behind.
It will be beneficial for us if we implement a blockchain decentralization system in our education system. This is because the students who pay for the certificate will have a complete record and will be easily apprehended and thus any manipulating will be avoided. And so we eliminate corruption from our education system.
Companies
Many companies follow a centralized system that leads to corruption. Employees relate to their personal gain, not to the company's profit and loss. They only work for the people who bring them. These people only work for their own benefit and the top management also gives them promotions that are for their benefit. In this way, corruption is fostered through collusion. People who do a good job but do not obey their seniors may lose their job. There are some workers who go against the company and work with corruption.
Therefore, if a blockchain decentralization system is implemented in companies, all the data of the company will be saved in one place, people will work hard and the growth rate of the company will also increase and the company will grow faster. And so we eliminate corruption from companies.
Banks
Today people are suffering from the problem that their money is stolen from their bank account. This is because most of the operations of the banks are done on a centralized system. And today people would take their abroad by money laundering.
If we implement a blockchain decentralized system in banks then no money will be stolen from anyone's account and we can also deal with money laundering and corruption will be done.
If we implement a blockchain decentralized system in every sector, many issues will be resolved automatically.
Conclusion
Blockchain decentralization system is very useful in our future life. It has revolutionized our life. This topic is very informative for me. It vast my knowledge. I learnt many things about blockchain decentralization systems. And last steemit is a very informative platform.