Decentralization, Block Explorer - Steemit Crypto Academy Season 4 - Homework Post for Task 4
Introduction
Question
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)
source
Decentralization
A decentralization system refers to a system in which administration is not governed or harnessed by a central authority or any government. This system allows every user to fully have access or power upon decision making. Decentralization users have direct interaction with each other without the involvement or influence of any central authority.
Decentralization can also be termed as the antonym of centralization whereby this involves the central authority in decision making. This implies that centralization users do not have power over decision-making. In a decentralization system, decision-making is not only in the hands of a central authority but instead in the hands of all users.
The data or information of decentralized users aren't in the power of a central authority but rather in control of their own hands. A decentralized system helps to secure the data or information of users. Decentralized systems include the internet, cryptocurrencies, etc.
Advantages of Decentralization
Decentralized systems are more transparent.
Decentralized systems provide more freedom to users
Decentralized system also provides high security which aids to prevent hacks or fraud.
The Decentralized system provides the platform for users to partake in decision making.
Decision-making in a decentralized system is much fairer and faster because every user is involved.
Decentralized systems do not provide the chance for corruption or cheating acts because of their high transparency.
There is a low cost of transactions in a decentralized system.
There is diversification and creativity in the decentralized systems.
The Growth rate in a decentralized system is very high as compared to a centralized system.
Disadvantages of Decentralization
There is a delay in decision-making due to the large number of individuals involved in making decisions.
Decentralized system is a bit costly and also require more skilled personnel.
There is difficulty in coming to consensus with an agreement because of the large number of individuals involved.
There is no refund of wrong transactions made.
In what areas of life can a decentralized blockchain be helpful?
- Health Sector:-
- Banking Sector:-
The Decentralized system helps users to securely save their assets in the banks safely and also secretly without any third party known. The Decentralized system also performs faster transactions in the banking sector as compared to the centralized system.
- Real Estate Sector:-
The Decentralized system helps to make it easier for both buyers and sellers to have a smooth running of business. This has made it so easier for buyers/sellers to have direct contact with each other and this reduce the corruption rate in real estate sector.
- Politics and Elections:-
The tranparency nature of the decentralized sytem helps to prevent conflicts or cheating among people during elections. Decentralized systems helps to guide the decision of individuals in making decisions regarding electing leaders.
Conclusion
To conclude with, I would like to summarize what we have done so far in this articel. First of all we looked at what decentralization system and also further went on to explain some of the advantages and disadvantages of decentralization.
Lastly, we looked at the areas in which decentralization is useful. We looked at the health sector, the banking sector, real estate sector, and also politics and elections sector.
I would like to say thank you to professor @yousafharoonkhan for such a wonderful lecture taught this week and I look forward to participating in your subsequent homework tasks.
Below is the references to images used above.
Thank You.