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)
Decentralization
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A decentralized system or network is a non-centralized system that supports independence in decision making and transactions of individuals, rather than having to rely on the instructions or control from a centralized body of authority, or power to operate or function.
Whereas a centralized system on the other hand is an exact contrary, where there is no freedom of independence in decision making or execution of actions, rather everyone under the system is subjected to a higher authority which regulates or governs over them.
Examples of centralized systems or networks include Facebook, YouTube, Twitter, etc where records of each and every single user of the network is collected, assessed and stored by the network owners and persons found to go contrary to the rules or instructions of these centralized based platforms can easily be banned from using the services these networks provide
A good example of a decentralized system is Steemit. A platform where the users of its services from top to bottom, regardless of the position in the hierarchy all have an independent right to make and execute decisions based on their own wisdom and perform transactions without having these transactions being regulated nor sanctioned by a governing body.
Despite not having a centralized authority in the decentralized system, all of the information involved is actually secured and cannot be duplicated or taken for malicious use, because all of the transactions occuring are actually validated to ensure no fraud happens.
Advantages and disadvantages of a decentralized system
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Advantages :
• The most important advantage of a decentralized system is that everyone on the hierarchy regardless of their level has the freedom of decision, to act or transact on the blockchain however they may please.
• Fraudulent and corrupt acts is completely eradicated in the decentralized network, because records of information and transactions are actually available to validate each transaction.
• It is difficult to hack because it doesn't operate from a centralized server, rather each user acts as his own server.
• Through the freedom of independence in expression and decision making, it actually helps in the building of individual skills.
• It is very possible to transaction discreetly without true identity or details being exposed to the public.
Disadvantages :
• There might be inconsistency or dissimilarity of goals.
• Individual users could actually misuse this power of independence in negative ways since there's no governing authority to regulate or oversee their actions.
• Making mistakes while transferring or performing transactions on the decentralized network could be very bad, because you might never get the money back due to its nature of discreetness.
• High cost in launching and requirement of highly skilled persons in this area.
• In an event of crisis, there's no leadership to put things in order.
Areas of life decentralized blockchain can become very helpful
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Due to its uncentralized nature, information could actually be stored on the blockchain for use in several many fields of life, including;
Health Sector
Information about patients could be stored and accessed by doctors around the globe, so they get to have a full medical history of all their patients regardless of the city, country or continent.
Thanks to the blockchain a patient wouldn't necessarily have to keep coming back to the same location to meet the same doctor, but rather can have his medical records easily accessed and treated by any professional doctor anywhere in the world.
Education
In education the decentralized network would improve efficiency, build individual skills, eradicate unnecessary and unfavorable government policies on the educational system as a whole.
It would also allow for an easier and much more reliable access to each individual student's academic records.
Governance
The blockchain technology is gradually changing the way individuals, groups, organizations, and societies view the world. These change would definitely demand for more effective governance to protect the interests of its society.
With the blockchain technology, votes can be casted fairly and governmental records available for the general public to access.
Monetary Transactions
The blockchain technology promotes safe and non fraudulent transactions to occur within parties with every single transaction on the blockchain validated and made public, so that a party doesn't use the same coin to transact twice, by making duplicates of the same coin.
A governmental fiat is not even necessary here to perform transactions, and also people all over the world can transact regardless of their location.
Documentation And Licensing
Governmental authorities can use the blockchain system to their greatest advantage, in generating of licenses such as driver's license, tax payment and documentation of number of their workers with their personal data, determining number of citizens at a certain time so resources could be properly allocated or even in cases of disaster management, so as to make provisions for persons displaced by such disasters.
