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 own words)

HOMEWORK

Define Decentralization

Decentralization is the transformation of the power of a central authority into a decentralized one. In short, it means to distribute a job, task or decision to more than one point, not one point. Every point/person in the decentralization system is free to express. Since there is no center in decentralized systems, everyone has the right to speak and all decisions are made jointly. Since everyone is equal and of equal value in a subject, everyone feels important and the sense of responsibility increases.

Decentralization has emerged for the first time with blockchain technology. Anyone who connects their computer to the blockchain system can assist transactions on the blockchain, thus decentralization.

Advantages and Disadvantages of a Decentralized System

Advantages:

• Having everyone responsible instead of one person makes things more self-sacrificing.
• Because everyone works together, things get done faster and there is consistency.
• Everyone feels more important because they are part of something.
• Everyone feels safer because everyone is responsible for the work done.
• There is no specific point to stop a decentralized system. To do such a thing, it is necessary to stop all units running on that system. Hacking a decentralized network is impossible, as it would be impossible to stop all units, providing complete security.
• Since the decentralized system is not controlled by any authority, powerful companies cannot get involved and society becomes more fair.
• When a unit breaks down in a decentralized system, all work does not stop, but when a unit breaks down in a centralized system, all subsequent units are disrupted.
• Blockchain technology is the most secure way of transferring money because it works with a decentralized system because it cannot be hacked.
• Credentials are not required to interact with a decentralized system.
• With decentralized systems, the person you send money to does not need to be in the same country as you, and the commission fee does not change depending on the distance.
• In a decentralized system, no one but you can access your money, thanks to the private keys for payment.(As long as the keys are safely stored)

Disadvantages:

• In a place where the responsibility is with more than one person, things can sometimes get messy because it will be difficult for those people to decide and manage.
• People may want to have more say among themselves as a group than others.
• Since people will act with their own egos and think that they are better, they will often try to take the lead.
• When you send money with a decentralized system, you cannot find a person responsible for a wrong transaction and you cannot return this money. Or if someone steals your money by accessing your private password, you will never get that money back.
• When withdrawing a large amount of money that comes with a decentralized system, there may be a problem in some countries as the source is not clear and your bank account may be blocked.

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

I think decentralization blockchain can help in almost all areas of life. Because transactions will not be processed from a single center, regardless of the field, and will be fast, reliable, cheap and easy. I would like to describe these areas in a few different ways as follows:

It is often mentioned that there is fraud in the elections of the new government in the countries. Decentralized blockchain technology can be used to prevent the epidemic. Thanks to VoteCoin, people can vote for things on an anonymous platform. In this way, everything happens in a transparent way and there is no cheating.

Since there will be a decentralized decision in a case where there is more than one judge in the legal system, a joint decision will be made, thus increasing the accuracy of the decision. In this way, both the punishments to be given are better chosen, the decisions are made more logically, and if someone is innocent, this will be understood more clearly.

In terms of energy, many people are now starting to use solar panels on the roof of their homes. People can now produce their own electricity, which they used to use thanks to intermediary companies. When people produce more electricity than they use, they can sell this electricity to another user, thanks to blockchain technology, instead of intermediary companies, and make a profitable purchase for both the seller and the buyer. In this way, high fees are not paid to intermediary companies or the surplus electricity is not sold cheaply. A decendtralized institution called PowerLedger continues to work for this.

Conclusion

As a result;

• A decentralized system is a safer, faster and more accurate choice in almost every field.
• Thanks to this system, life can become much easier and the benefit of the people, not the big companies, can be ensured.
• By enabling everyone to contribute, it can make everyone more responsible.
• As people will feel that they are a part of something and important, their self-confidence can increase and accordingly their quality of life will increase.
• When making money transfer transactions with a decentralized system, less transfer fees are paid and transfers are faster.
• When there is a malfunction in any business, this disruption does not affect the other places to which it is connected.

CC: @sapwood

by @theoxl