HELLO EVERYONE,
Hope you all are doing well. My name is Syed Huzaifa and I intend to write about The Blockchain, Decentralization, Block explorer today. I'll be particularly focusing on the Decentralization topic. This is Crypto Academy Season 4 Beginners' course - Task 4 homework post assigned by @yousafharoonkhan. Let's move on to the topic.

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Homework Task-4

Define decentralization. Describe the advantages and disadvantages of a decentralized system. In what areas of life can a decentralized blockchain be helpful? (write-in your own words)

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Decentralization:

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Decentralization of a system or blockchain means that the system is not under the control of any individual or authority. In a decentralized system, each user has the power to make decisions rather than a centralized system that is managed by a single individual or entity.(Image Source)

Blockchain is a term often used in the world of cryptocurrency, which can be described as a chain of block pairs one after the other. The purpose of the block is to store information.

The picture shown above is the diagrammatic representation of a centralized and decentralized system. In a decentralized system, all individuals are connected and are free to make decisions, they have free will over the system. In the central system, control is in the hands of a single individual or authority.

For having a clear understanding of both the system, let's take an example of the ways for governing a country. The state can be ruled in two possible ways:

• Democratic
• kingdom

Democratic government is more like a decentralized system, where people have the right to choose a leader. While in a centralized system the government is in the hand of a single authority.

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Advantages Of Decentralization:

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Regarding the benefits of a decentralized system, there are many, some of which are mentioned below:

• One of the great and notable advantages of a decentralized system is that all the users are connected who lend a hand from top to bottom to transfer power.

• Faster response and resolution time is also a considerable advantage of a decentralized system.

• The chances of being hacked are almost zero.

• Customization is not possible in a decentralized system.

• In a decentralized system, power/authority is not in one hand, However, everyone there can freely control and transfer the funds.

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Disadvantages Of Decentralization:

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Likewise having a lot of advantages, a decentralized system has some demerits too.

• Coordination is a big problem in a decentralized system, as everyone can independently make their own decision, it's difficult for all the segments to work on a common goal.

• Another unneglected demerit is the chance of commencement of crime. As anyone can transfer its fund to any user, the rate of crime is greater in a decentralized system.

• Recovering funds is difficult. If a sender mistakenly sends his funds to the wrong address it's very difficult to get them back.

• Last but not least, the cost for launching the system is very high and also required trained and skillful people.

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In what areas of life can a decentralized blockchain be helpful?

The world of networking is evolving and blockchain technology is not limited to cryptocurrencies. Across finance, blockchain has been adopted in many other domains, some of which are mentioned below:

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Government:

Governments of many countries have set themselves to upgrade with blockchain technology.

Dubai:

Dubai has set a vision to become the world's first blockchain state.

Followmyvote.com:

Here's another site that developed a voting system applying blockchain technology that is secure and transparent.
(Image Source)

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Retail Bussinesses:

OpenBazaar:

OpenBazaar is an attempt for making the trading of goods and services completely decentralized. It will work on a decentralized system without the interplay of a middleman. (Image Source)

There should be such retail sites where the customer can pay in the form of crypto. It should be completely decentralized.

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Manufacturing and industrial:

Blockchain technology has also been used in the field of Manufacturing and industrial. Following are the example for it: (Image source)

Jiocoin:

World's reknown company with a gigantic turnover; Reliance industry, has set themselves ready to launch their first cryptocurrency that will be used in logistics domains, and for that, they are all developing blockchain-based supply chain logistics.

SKUChain:

SKUChain is a system based on blockchain technology that will be used for tracing and tracking goods while they proceed through a supply chain.

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Conclusion:

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Blockchain technology had been adopted by the world, not just in finance but in other sectors too.

• In today's homework post we learn about what exactly decentralization is and the merits and demerits of decentralization.
• Decentralization can be implemented in various fields of life like health care, banking, charity, and many more.

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I hope you like today's post and learn something new. Take care, Goodbye.

Regards,
@syedhuzaifa123.

Cc:
@yousafharoonkhan