Crypto Academy Season 3 Beginners' course - Task 2: Blockchain, Decentralization, Block explorer
-Define decentralization
-Describe the advantages and disadvantages of a decentralized system.
-In what areas of life can a decentralized blockchain be helpful?
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DECENTRALIZATION
A decentralized system is where control is paramount to the user there is no third party in control, the participants in the system are their own control. To break this down further, every decentralized system supports the freedom of its users rather than basking it up in one central control.
An example can be the government of a democratic country(emphasizes on democratic) is a centralized authority. Who placed them in power? the masses/people through voting which is a decentralized process.
Decentralization is a process that supports individuality control. All power in regards to how you run, decision-making of your work is solely autonomous. It makes it very impossible for user information to be accessed, this is because in the decentralized system the structure which created the network has no capability to attain the information. Should there be a case of hacking into the network the decentralized system limits how much data the malicious third party will obtain.
In this system, thousands of computers come together to form a decentralized network. This computers serve as servers, this means that users' data does not use a center server. The connection of all these computers to this system are called nodes. This is how the blockchain system works, under a decentralized system where editing or changing an information in the block is dimmed impossible.
Advantages And Disadvantages Of A Decentralized System
The Pros to using a decentralized system:
It is censorship-resistant .In a decentralized network, censorship vulnerability is pretty low. The users cannot be banned or sanctioned for how they choose to express themselves. This is because there's no controlling authority to answer to.
Data stored is impossible to be obtained my malicious third parties. An attacker would need to gain access to a good number of nodes on the network to be able to obtain user's data.
Privacy is guaranteed. There would be no need to depend on a controlling center in a decentralized system.
There is control over decision-making. This can also be extended to trading and transactions of money when needed.
It eliminates hierarchy, every user connected to this system is in line to develop according to potential and ability.
As far as the Pros go there are cons in a decentralized system:
As much as freedom is exhilarating, it may lead to diversity of decisions.
Often times, competent and capable individual may not be able to run a divisionalized community.
The creation of such a system is time- consuming and highly expensive. Very trained personnel are needed, this is to avoid mistake in transfer transactions. Should there be a mistake, money is gone and never gotten back.
In What Areas Of Life Can Decentralized Blockchain Be Helpful?
Blockchain technology has evolved over the years. Today, innovators in various fields are queuing in looking for ways to integrate blockchain into their infrastructure.
Lets have a look at some areas where decentralized Blockchain can be proven helpful:
Digital Life
As much as the decentralized system is tagged a trustless system, it is considered far more reliable. The most secure decentralized end-to-end messaging apps via routing them through randomly selected nodes, this ensures that the nodes being used changes for every new message. Its been said that loss of servers to software bugs, hardware failures and as far as natural disasters can be tolerated using a decentralized system.
Politics
The good of the system in this is Voting. With this ,substantial possibility of fair election can be obtained. A democratic country with luxury of a decentralized voting process puts an end to electoral rigging, and puts the people at peace, eliminating doubt regardless of outcome.
Automotive industries
Today, cars are not just autonomous transportation devices, auto manufacturing is indeed global. From seamless mobility services, micropayments, completed cars can be driven anywhere across the world. From maintaining safety and reliability to be able to track vehicle, managing and arranging insurance coverage. Every single part of the automotive supply chain down to the bare minimum is buttress by payment. The decentralized blockchain would help to create transparency and traceability would help keep track of all transactions.
Insurance Sector
This would enable faster verification of data, a stream for visibility for all parties and eliminating transactions under the guise of security and trust. Improving efficiency and accuracy for both insurers and the involved departments.
Health Sector
This will assure data integrity for multiple parties. In doing so, network participants can access data with assurance and confidence of information while controlling data. This means that patient/clients can move freely to any health sector and there would be no need of transferring their medical records each time as this can be accessed in a single status.
It can also be used to keep track of drugs, pharmaceutical companies can keep trail of items produced this would help to eliminate the flood of counterfeit in the drug market.
CONCLUSION
The Decentralized system might not always be a great fit. Some people like to have someone in control while some don't. Today, decentralized blockchain is well sought.
I would like to thank professor @yousafharoonkhan for his clarity on this lecture.
THANK YOU!
Hi @sandrakez, Thank you for taking interest in the 2nd Task of the Beginners Fixed Class. Your grades are as follows:
My Review and Suggestions:
You have completed the task.
Use numbered lists, bullet lists, etc to highlight important points.
The discussion you made on sectors that are suitable for decentralization is too general, try to find other sectors.
Vary headers and sub-headers to make them look more attractive.
Thank you!