Steemit crypto Academy season 5- Task 4 [Blockchain, Decentralization, Block explorer]
(2) 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.
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Decentralization, let's start by defining this term from the etiological point of view of the word, the prefix "des" gives it the opposite meaning to the word that accompanies, and "central" means that it is in the center or is an essential part of something. Encompassing the word "decentralization" refers to the opposite of centralization, it refers to it being outside a center or higher authority as such.
Decentralization consists of a system where there is freedom of management and not only an authority that manages everything (as in the case of centralization), there are different responses in this system that is managed autonomously.
We can understand as centralization, for example, a company that has an owner and this let's say that it is the central point or maximum authority, the workers of this company work under the command of this authority, under its rules and everything that these workers do in that company will be approved or disapproved by this central authority.
An example of decentralization can be a company in which there is no higher authority, each one is autonomous from his work, there are no hierarchies between them. Everyone is responsible for what they do and is free to exercise their work without expecting approval or disapproval from any authority.
In Blockchain decentralization is present, each member of the blockchain is responsible for its content, has freedom of creation and is not governed by a higher authority. Despite not relying on a central entity, the data handled here is protected by cryptography.
Describe the advantages and disadvantages of a decentralized system.
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Advantages
It is resistant to failures, if there is a failure in part of the system it will continue to work because there are many more elements that compose it that continue to work.
It is resistant to attacks, it is more difficult to adulterate a system that is composed of several elements and not a single central point, since when there is a central point it would be attacked and perhaps they would have good results but attacking the various elements of a decentralized system is more complex.
It allows each user person to be autonomous, freedom of expression is allowed, there is no censorship and everything that is handled with this system will be managed by several elements and not dominated by a single authority.
It is very productive to work in a decentralized system as there is creative freedom and they tend to develop their individual skills better.
It is faster since no approval or disapproval is expected from any authority, it is a job of its own and therefore its own decisions are made and there should not be a wait to perform any activity.
In a decentralized system you can remain anonymous without revealing personal data, only working on it with our public and private key.
Disadvantages
A working guideline is not established
In the absence of authority, there may be an inappropriate use of the system because it does not have rules established by a central point.
Disorganization may occur due to the fact that each user works separately
There may be poor quality of content due to the lack of a model structure
With regard to the payment system with this system when making a transaction, great care must be taken not to make it erroneously since not in the absence of an identification of the other person, your money could not be recovered
In what areas of life can a decentralized blockchain be helpful?
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There are several areas in which the term decentralization can be applied, areas such as political, economic, educational, administrative among others however they all have in common that power is not concentrated in a single point, but is distributed.
Payment systems:
- We observe it currently, to make a transaction, unlike a centralized system, in this, we can have our money at all times. Both receiving and making payments in all parts of the world does not require that the person has an account in a certain bank or that belongs to the same country, it is a system that allows us to make and receive payments from all over the world at no extra cost. As long as we make correct use of our private keys, everything will be fine as it is quite secure.
Politics:
- As this is a transparent system, you can make votes, discuss laws, make proposals, among others, through this system. Problems of fraud or conspiracies will not occur as perhaps has happened in the centralized system and in the same way it could be done anonymously (such as voting), thus guaranteeing democracy and transparency.
Security system
- For example, in the case of national security, they could be managed through this system since it would be quite safe as discussed in the advantages is a system resistant to failures and attacks.
Services:
- This would include services such as electricity, water, internet, gas, etc. where you can keep a good consumption control to which each user can have access to it, as well as users who provide this service and acquire it in a more accessible way and not through traditional companies that the cost is quite high.
Legal documents:
- The decentralized system would allow for more transparent contracts and to which only interested parties have access. Also as birth certificates, death certificates, as well as disability and many others where we can have access to these anywhere in the world and in an organized way, without many procedures in a safe and accessible system.
Education:
- It would allow an autonomy over education that are not governed only by imposed chairs, thus allowing students to stand out more in some areas as well as participate more actively in this learning process, that they have access to all their academic record and there is evidence in this system of their learning and development in each area.
Health:
- This system would be ideal for this area, for example, if you can have access to medical records in order to know the background, if the person had any surgical intervention or if he suffers from a basic disease, as well as allergies, among others (only authorized person), that you have access to a record of the diseases and based on this you can promote health and have more accurate epidemiological data, and all this from anywhere in the world. It would facilitate medical care.