Hello, dear steemians. I am very glad to participate in this homework task 4 which is about Decentralization by professor @yousafharoonkhan . I want to thank professor @nane15 sir for reviewing my previous tasks.
QUESTIONS - 3
|2||Describe the advantages and disadvantages of a decentralized system.|
|3||In what areas of life can a decentralized blockchain be helpful? (write in own words)|
➽ Q1: Define decentralization.
In this present world, there are two systems available now that are Centralization & Decentralization. We should know about both of them. I am answering for decentralization here. But I also want to describe Centralization in short.
Centralization: There is a process or method in which some activities that are important to run for an organization like planning, decision making and power to control things are only given to the higher officials or to the some of the specific person of the organization. The person or higher officials make the decision and the ones who are working under them have to follow the instructions given by them. This type of system is Centralized System.
Decentralization: It is the reverse process or method of centralization. Here the activities run by an organization are equally distributed among the members of the organization. One can decide what is best for him and make plans and execute them with or without the permission of anybody. In this system, nobody is controlled by a single authority/ person. The controlling power is distributed among every one of a decentralized system.
The decentralization concept is invented with the first-ever cryptocurrency invention. The first and successful cryptocurrency is BITCOIN which is invented by Satoshi Nakamoto. We should appreciable Satoshi Nakamoto for this great invention. At present, there are thousands of cryptocurrencies are available in the blockchain such as Bitcoin, Ether, Steem, Trx, etc.
In decentralized platforms, the transactions and funds are not controlled by any kind of central controlling unit. Here is the best example that is Blockchain Decentralization. In the blockchain, users perform the P2P transaction without the involvement of third parties or middlemen like banks or brokers. Steemit is a decentralized social platform where every person has their own wallet by which they can make any kind of transaction without the involvement of third parties. So, the users have full control of their assets.
➽ Q2: Describe the advantages and disadvantages of a decentralized system.
Advantages of Decentralization
Every user of the decentralized platform has the ability to make any decisions in the system.
The decentralized systems are more transparent than any other system.
The users of the decentralized platform don't get any pressure from the central or higher authority.
Decentralized platforms are highly secured.
Every data is stored on the blocks so that it can't be changed.
The transaction process is very fast, reliable, secured, and user-friendly.
There is a very low cost for every transaction in a decentralized system. Cause there is no third party or middlemen here.
Every user of a decentralized system has full freedom.
Disadvantages of Decentralization
There is a big risk when users have to transact any amount. If a user transacts to a wrong address the funds cannot be retrieved. (I have experience of 37 SBD on Bittrex. So, be careful everybody)
Decentralized systems use digital currencies which is not stable, this can sometimes bring great loss.
Keys are very important in decentralized systems. If a user loses the keys to their wallets, he/she will also lose their assets forever.
There is no chance to make duplicate user keys without a master key. Everyone should keep their keys secure.
As the power of decision-making is given to lower and higher officials or users, there is a chance that any can misuse it.
Decentralized system requires skilled persons. Cause illiterate persons can't understand it.
There are many bad peoples who are using this for illegal activities like money laundering or many things.
➽ Q3: In What Areas of Life can a Decentralized System be Helpful?
From the above discussion, we could say that Decentralized systems are very secure and reliable. Already a large number of people start using this Decentralized System. And it's increasing day by day. Here I am asked to describe that in what areas of life can a Decentralized System be helpful. Now I'm highlighting some important sectors where it will be helpful.
Under a centralized education system, everybody hasn't an equal chance to get the proper education. Cause if you want to admit to a good institution then you have to pay a huge amount. But what about the poor people? On the other hand, in a decentralized education system, everyone will get an equal chance to get the proper education. If everyone gets proper education, they could get better jobs. By this, we can reduce poverty. So, I think we should apply the decentralized education system.
It will be a great decision to adopt the decentralized system in the health sector. If it is applied, both rich & poor will get proper treatment. In this decentralized system, every patient could upload their health information on the blockchain. And every doctor can check the information of patients anytime from anywhere. And the suggestions of the doctors are also stored on the blockchain. By which every patient of the same disease could get the proper information from there & get cured. So, I think, it should be applied to the health sector.
Every trader should have knowledge about the decentralized blockchain. Cause, there are many trading brokers are available on the decentralized blockchain. I already described that a decentralized system is very secured. There is no requirement to reveal the identity of a seller/buyer to trade on this blockchain. So, I think a decentralized trading system is more better than a centralized system.
As I said above, a decentralized system is very secured. Under a decentralized banking system, every account holder will get their own private keys. By which they can get all information about their assets and can transact anytime any amount from anywhere. There is no transparency between the authority and the account holder. So, I think a decentralized banking system is more better than a centralized system.
To reduce the corruption in politics, we should apply the decentralized voting system. Not only in Bangladesh but also in many countries, we see that there is huge corruption in the voting booth. If we adopt this system on voting, no corrupted politicians could make any violations. So, we can select an eligible candidate to vote.
I have explained all the questions. I want to thank professor @yousafharoonkhan for arranging this informative homework task of Decentralization. I have learned a lot from the lecture given. Thanks to all my steem friends.