[Blockchain, Decentralization, Block explorer] - Crypto Academy S5 - Homework Post for task 4

Homework Task 4

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)

Define Decentralization
This is not just like the centralized authorized system because with the use of decentralization every user who are using the platform is willing to take part in the ownership. So, there is no single authority to govern and it connects many servers together. In a nutshell, this is drastically opposite to what we are familiar with the conventional centralized platforms. As an example, when you take world famous cosmetics companies and their world-wide branches, they have no single authority to govern, the owners of the respective country branch representative will handle the system. So, in this decentralized platform, the users have the full authority to implement their desired work.
Most important thing is that, in a decentralized platform, no single person can change the data in the platform and the transactions are visible and clear to everyone. Not only that, but also in decentralized platforms, fast decision making and reduce pressure on the top managements are some special features.
So finally, we can say that, decentralization is the distribution of power of single entities to small entities which are in the lower in the hierarchy of the management. With this everyone is free to make decisions with their own.

Advantages
High security-Most important thing is that in decentralized security system, the system hackers have no chance of steel the funds, data etc. Most of the time, to hack a decentralized system the hackers will have to take the majority power of the connected servers. So, it is an impossible task for a single person to do so.

More opportunities to develop skills of the executives.-With this, as everyone has the power and the power is distributed, everyone has the that right to take decisions. The users will have the chance of gaining knowledge and up their standards.

transaction under a transparent background.-As we know, we all experienced the slow transaction methods of centralized system. But in a decentralized platform, as there is no single entity to govern, the decision making to execute transactions are fast. As the system is connected, the transaction made through nodes are highly visible to everyone.
Also by using decentralized system, sudden server disappearances or sudden collapses are reduced up to some extent and looks everyone was comfortable under decentralized system.

Disadvantages

• Initial cost of implementing a decentralized system is very high and as the decentralized concept is new to world, time consuming is also a fact that can think as a disadvantage
• Lack of well-trained well-organized person to do the knowledge distribution & train the new comers also a major problem.
• As there is no need of KYC to register in a decentralized platform lots of fake transactions, fake accounts are available.
• As there is no central authority to inform the false transactions, no chance of take back the false transaction asset or data. In a nutshell, loss of data or passwords means loss of account.

AREAS OF LIFE WHERE A DECENTRALIZED BLOCKCHAIN CAN BE HELPFUL.

• Using of decentralized system in banking sector.
  When we consider the world-wide banking systems, they are using the centralized conventional transaction system to do the respective fiat money transactions. But over the years we have noticed that due to this central authority, many people have been suffering from hacking of accounts. Transferring so much of money using the centralized system gives so much of pressure for its users, not only that but also money laundering, fraud transactions, high transaction cost also leads the users to a high-risk position. But implementation of decentralized system can give a good solution for the above-mentioned cases in a positive manner.

• Vote considering places.
  Now a days it’s very common that data manipulation scenes comes in to the action.In reality shows, elections people are blaming that the data was manipulated by the respective central authorities.This happens mainly because of the centralized system.So with the implementation of decentralized theory into these vote taking places, no one can manipulate the data and it will be visible for all the users so as the contestants.

• Land revenue and ownership detecting services.
  Normally in today’s world there are so many fraud land documents and fraud land transactions were founded.For this, I think the centralized documentation of lands and the time consuming when taking such documents via the centralized authorities are the main problem.So if we thought of decentralizing these documents will definitely help everyone in the network to identify the fraud and the real documents.

Conclusion
I see decentralization as the next technology change in the world to save people technology related activities.Thank you Professor @yousafharoonkhan , for teach us this wonderful lecture.Hope to learn more from you.