Steemit Crypto Academy Contest / S1W3 – Blockchain through the concepts by @gentles

• Why do you think it is important in the blockchain?

• Do you think that the existence of the blockchain would be possible without this concept? Is there an alternative or similar term?

• Do you think it is possible to improve this term in some way? Explain us how

Blockchain is a decentralized immutable digital ledger of transactions that brings together multiple computer systems to provide a very safe and transparent record of transactions. The transaction records or ledger comprises transaction data stored in the form of blocks.

Blockchain records the transactions electronically and in a manner that makes them almost impossible to hack or manipulate or even erase from the system by hackers or fraudsters and even users of the system. This makes the blockchain system immutable, very secure, and transparent since everyone can see what is going on in the system, this enhances trust and does away with third parties.

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The main difference between a normal database and a blockchain is how the data is collected and stored. Blockchain gathers data in groups (blocks). The blocks have a storage size and when full is closed and connected to the previously filled block and arranges to form a chain. The database only collects and stores data in table form.

My favorite concept or term related to a blockchain is Decentralisation.

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Decentralization is the evenly or complete carryover of the power of decision-making from a central or single authority to the whole network evenly. The central authority could be a single individual or an organization. With this, every node or individual in the system has equal weight of right to make decisions and also govern the network just like everyone else. Blockchain systems’ goal is to ensure that trust in the system is evenly shared to prevent superiors from imposing their superiority, control, or authority on other members that will have an impact on how the platform is supposed to operate. The nodes are given complete freedom and full control of the system just like every other node in the system.

Decentralized networks contains computers or nodes that are able to interact in a peer-to-peer (P2P) or direct way, data validation with this method is completed without an intermediary, which makes it very cheap. Equal authority and control are provided to every node on the system, they are also independent of each other. So, an equal amount of data is given to all the nodes equally on the system. The nodes do not follow the rules of any central authority what the majority of the nodes agree upon is the decision that is followed to keep their security and integrity intact. An example of a decentralized system is the Steemit platform.

We all have an experience of how the Steemit platform works, we are given total freedom to use our accounts in any way we prefer and make our own decisions. We execute transactions like Steem power-up, steem, or SBD transfer at our own convenience without any fee or interference.

Centralisation is the opposite of decentralisation, with this system, a single entity or authority is the one that makes the decisions and controls the system. Unlike the decentralized network, the centralized network does not provide users with complete freedom. Users are not given equal rights to make decisions and govern the network. Examples of such platforms are Facebook and Twitter

Centralized systems like our banks due to the authority they have, care less about the decisions of clients. Due to their interference in my transaction process, progress was very slow and I had to join long queues to participate in a very lengthy paper-works. They also charge more for their work as transaction fees which eats into clients’ funds.

Due to the absence of intermediaries or third parties to charge extra fees and go through other processes, decentralized networks are cheaper and faster. Also, they make the blockchain system very safe, immutable, and transparent. This makes decentralization something that is very unique in blockchain systems.

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Let us look into some advantages that decentralized systems give to their users

Advantages

•Every node in the system is included in decision-making that governs the system with equal control and power.This makes sure that no one is exempted from decision making and also no one will be able to impose any form of authority over another.

• Data stored in a decentralized blockchain system cannot be reversed or manipulated by anyone. The data is also publicly displayed for everyone to see. This enhances security and transparency as every fraudulent or criminal act will be seen by everyone on the platform.

• User are given complete freedom. There is almost no limitation to their movement or activities on the platform. With this, transactions are performed at the convenience of the user without the need for authorization or interference from a third party. This is made possible through the use of consensus mechanisms by decentralized blockchain systems to authenticate information.

• The prospect of an attack, criminality of fraud is made less. Data stored by a decentralised system cannot be manipulated or reversed. This makes hacking and fraudulence actions difficult to do in the system.

• With decentralisation, the load of work by the centralized authority is shared equally among users. Over-reliance on a single entity will cause too much stress which might affect their work output.

Disadvantages

Despite the many benefits that it provides, decentralized systems have their shortfall like everything else. Here are some of them

• Collective individual performances are required for the system to operate well. The total work by the users of the platform is what runs the system. If the users are not well motivated, they may fail to exercise their full duties and that will result in the failure of the system.

• sometimes transactions become risky to do if care is not taken.. Data on decentralized blockchains are not reversible or cannot be manipulated. When there is a mistake like entering an incorrect receiver in a transaction process, the funds are lost forever. Users have to be very vigilant during transactions.

• Users totally lose their accounts when they forget their private keys . due to the decentralisation, users are given total control of their private keys, the system does not keep them for them. Unless the user backs up the private keys, they will lose their accounts beyond recovery if they lose their keys.

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There are numerous ways that decentralisation is important to the blockchain system. We will talk about some of them here.

• Transactions on a blockchain system are much more enhanced. Decentralization helps to smoothen, increase the speed and make transactions cheaper and safer on blockchain systems. The removal of intermediaries from this system prevents the delay of transactions, unnecessary fees, and stress.

• Authority on decentralized blockchain system is evenly distributed. This allows everyone to participate in decision-making and governance on the platform. Every opinion of every user is included in decision-making.

• **Decentralisation is very important in blockchain because it prevents criminal and malicious activities like corruption, hacking, etc. thereby making it strong in terms of security. Any manipulation in the system’s data is detected and acted upon very quickly. This improves transparency as data is made public for everyone to see.

• Decentralisation in blockchain helps to enhance financial efficiency. This means the worth fees charged in decentralized blockchains are seen by users in their speed, convenience, safety, etc. unlike in our banks where clients will go through a lot of stress and still pay huge fees.

• Decentralisation prevents government interference in the blockchain system. The government is not able to influence the blockchain system with its politics and stiff rules and regulations which will limit the potential of the system and take away the freedom that the users have.

These reasons are why Decentralisation is very important in blockchain systems.

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I do not think blockchain will be possible without a decentralization system, this is due to the fact that decentralization is fundamental to blockchain technology. It is due to this reason that most known cryptocurrencies are based on decentralization technology.

Let us use the Steemit platform as a practical example. If Steemit was not decentralized, transactions on the platform would have been hidden from public view which would have allowed some corruption by leaders in upvoting and favoring some users over others. Decentralization made it transparent, so everyone can see all actions preventing these kinds of corruption. Also, it would have been very costly to open a Steemit account, new users would have to be granted permission by central authorities who would also charge some fees before they can register which would send them away from the platform. it would be very easy to attack or hack the system if decentralization was not implemented. Free will to upvote, power up, send tokens, etc would not be present.

With this practical example, we can see that without decentralization, blockchain will be less secured less transparent and less independent from third-party interference which would allow criminalities and all sorts of malicious acts such as stealing data, changing users’ information, etc.

Blockchains need to be independent. Decentralization is the technology that can make it achieve that aim. It prevents government interference and manipulations such as tough rules and regulations, politics, etc. which will take away the integrity of the system.

The only alternative that can replace decentralization is centralization. Centralization is the total opposite of decentralization. For those who have little or no knowledge about centralization, I will briefly explain it. A centralized system is a system where all the power to govern and make decisions on a network is held by one single entity. This entity also serves as a middle man during transactions, the most commonly known centralized system is our Banks.

To me the benefits of decentralization outweigh the benefits of centralization, that is why I would say that decentralization should be the system that operates in blockchain systems.

These reasons are what constitute my mind and opinion that blockchain cannot exist with decentralization

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Decentralization is very special and has lots of benefits that does not mean it does not have flaws to be improved. So yes, I think it is possible to improve certain areas of decentralization.

• Every participant in a decentralized blockchain system is anonymous and that is a huge flaw to improve upon Some users take advantage of this situation and create fake user accounts with false details and use it to engage in criminal activities on the network. Leaders should find a way to engage users in a little know your customer process so as to obtain some legit information from them which can be used to track them in case of a criminal event.

• Fluctuations in prices. Prices on decentralized platforms fluctuate a lot, causing some losses to some users. To tackle this issue, a system that stabilizes the prices on the platform to reduce the losses of some users.

• Due to the decentralization of the platforms, users have no one to make a complaint to when there is a problem. This situation is very worrying. There should be a form of governance system where users can take their problems such as system malfunctions or other problems like reporting crimes for help.

• One of the major concerns that need to be looked at is the volatility of prices on decentralized platforms. Prices of assets have very high volatility, they can rise and fall within a very short time span. There should be some way to stabilize their prices.

In this post, I first talked about blockchain which is an electronic digital ledger of transactions stored in blocks and connected in a form of chains.

Decentralization was my favorite concept, it was my favorite because of the numerous benefits such as security, transparency, speed, etc that it provides to users. I explained it as the total transfer or even distribution of power from a central authority to all nodes or members of the system. Despite it being my favorite, it has some disadvantages like the irreversibility of transactions and lost private keys among others.

Decentralization is important in blockchain because it is fundamental to blockchain technology it also provides transparency, independence from third-party interference, security, and convenience to the blockchain system. It also helps in reducing the transaction fees on the networks. It has an alternative which is the centralized system.

The anonymity of decentralization needs to be checked as it encourages criminalities, price volatility, help center, and some other things on decentralization can be made better to make it better for us all.

Thanks very much for reading