CRYPTO ACADEMY SEASON 3 BEGINNERS' COURSE - TASK 2: Blockchain, Decentralization, Block explorer || Homework by @kinkyamiee

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)

Hello Family, Hope we are getting along with the break in the community. I welcome everyone to my blog as I present to us TASK-2 of the Beginners Fixed Courses. I will be attempting only the Second Question as required from the guidelines and most especially in my own words.

Define Decentralization

Decentralization has been one of those numerous common terms used on the internet each time the word cryptocurrency is mentioned. It is the mainstay of blockchain technology that entails an even distribution of information in a given system. Most experts have seen it as an alternate to the centralized system and the main difference is seen between both systems.

Decentralization allows that information dissemination is equally shared and distributed to all shared systems connected to it without any form of segregation. This simply means that each time there is any new update in the protocol, the first node that gets this information distributes to the next nodes and the next nodes send the same data to the next which sees that all connected nodes to the system get this shared information within a given period.

In a decentralization system, all participating individuals in the system are known to freely engage the system without any form of interception or obstruction while doing so. This simply means that there is freedom of expression confirmed from this type of system (Decentralization). It is void of the presence of a unitary unit or authority that is seen present in the centralized system.

In addition, while engaging the decentralized system, I don't need to pass through any middleman or intermediaries which ordinarily increases the cost of transaction in the centralized system. Here, the user will have to deal directly with the system without having to pass through the rigorous processes of the intermediaries. What about the ease of onboarding newbies in the decentralized system, this is not only easy but also less dramatic in its documentation process. Users find it easier to come in as new users with having to undergo several documentation processes.

Lastly, the decentralized system was upheld with some form of leverage above the centralized system due to its additional security level. This system entails that completed transactions in the system cannot be altered or intercepted during the process given to the workings of the decentralized protocols.

Advantages & Disadvantages of the Decentralized System

Advantages of decentralized System

• Brings an additional security layer to the system where there are interactions amongst all available nodes in the system which makes it difficult to undermine through malware attacks.

• There are direct interactions and engagement with the system without having to pass through middle agents to access the system. It removes completely, the activities of middle agents in its protocol.

• There is complete ownership of accounts for users engaging the decentralized system with access to all available KEYS which allows the user to own an account 24/7.

• Less Rigorous processes are involved while creating a new user in the system. I don't need to pass through the lengthy KYC documentation seen in the centralized system.

• There are relatively low-cost transaction fees when used in the system vis-a-vis the centralized system. Also is the cost of engaging the system where there is no presence of middle agents which also add up to additional fees.

Disadvantages of decentralized System

• Though the entrance feature in the decentralized system is easy, it is still saddled with its difficult interface which makes it more complicated for newbies to navigate and explore the system.

• This is a cost-intensive project that requires huge capital to set up especially in assembling equipment needed in the mining activity.

• Decentralization has a long-standing issue of scalability though there are other alternative ways to improve Scalability through offline transactions.

• Due to the relatively low acceptance of the decentralized system, they are a low presence of liquidity in its platform.

Application of Decentralized System

• In Electioneering Process: This is a reputational system that gives a fair, credible and transparent platform to engage people in a manner that its selection process would be acceptable to all concerned. This is evident in the features of the decentralized system which upholds Transparent, Secured and trusted features.

• In Academic Environment: The academic system can use this system to harmonize their school performance reports, Roll-call list and another database in its platform. This help to improve transparency and trust in the system.

• In Logistics Companies: Logistics companies are seen to use the services of a decentralized platform to allow for easy monitoring and movement of goods by all partners in real-time.

• In Pharmaceutical Companies: Products manufacturing, movement and retailing in the pharmaceuticals use this decentralized platform to monitor the efficient distribution and usage of its products down to the end-users.

• In Custom/Immigration Unit: Government agencies like Customs and Immigration can use this protocol to track and trace consignments and movements of persons in and out of their borders.

Thank you all.

Written by: @kinkyamiee