CRYPTO ACADEMY SEASON 3 BEGINNER'S COURSE - HOMEWORK POST FOR TASK-2 : DECENTRALIZATION. By @victorevan

Hi everyone, I would like to use this opportunity to thanks professor @yousafharoonkhan for his great job so far, and for this opportunity to do this task on the beginner's level, now going straight ahead

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).

WHAT IS DECENTRALIZATION

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Decentralization is referred to as networks nodes which possess peer to peer interaction with the absence of third party involvement.
These nodes are independent of each other, and rather than following centralised rules, they manage their own privacy, and information is disseminated to every nodes available on the network.
In other words, I would say Decentralization is a system in which every participant or user either from the top or bottom is also in control and isn't exempted from decision making, as well as empowerment in their line of action.
Users are free to make transaction without being controlled by centralised laws, it is quite transparent and efficient, that everyone has the copy of the data used in whichever decision is made.

Unlike the Centralised systems, Decentralization is controlled by lots and lots of computers, and do not require any permission from an intermediary in any way and that makes it a unique peer to peer system.

Advantages of decentralized systems

1. Transparency: In the decentralized system, the transaction information and receipts or data on the blockchain are exactly the same on both ends, as well as progress of a pending transaction, and unlike in the Centralised, you have absolutely nothing to worry about.

2. Data storage: The measures of Data storage in a Decentralized system is totally magnificent, these data are coded or encrypted which makes it impossible to be hacked or modify in anyway, make it very safe away from hackers or Cyber thieves to get hold of.

3. Privacy: The issue of Privacy is not to be worried about in the decentralized system, because the system already offers a peer to peer transaction without any interference from any intermediary body, so you're rest assured that it is strictly confidential between you and the second party involved in the transaction, this in turns gives freedom of private transaction procedures.

4. Maintenance: In aspect of maintenance on the decentralized system, all hands are in deck, leaving no users out of the equation, because they all contribute individually as well as a community without relying on any third party.
   However, the maintenance and growth are unanimously decided and carried out by the community members itself.

5. Cost Reduction: As oppose to the Centralised systems which have the presence of third parties who also collects some percentage from each transaction as well as other charges, the decentralized system do not have such features, and this in turn leads to some overall reduction in cost.

Disadvantages of decentralized systems

Though I highlighted the advantages above, I would also be highlighting the negative sides to Decentralized system.

1. Sending Money to the Wrong Account:- This is one major disadvantage in the decentralized system, in which if you send money to the wrong address it can not be traced or gotten back ever due to its highly encrypted security protocol. but this is not the case in the Centralised systems

2. Currency price fluctuations: This is yet another major issue in the Decentralized system, because as much as prices go up and everyone is happy, prices also goes down, take for instance, some weeks ago before bitcoin major dip, it was approximately $60,000 USD and all of a sudden dipped down to around $30,000, and as of the time I'm writing this post it is currently $34,080.
   Now imagine those who purchased bitcoin around when it was between $50,000 to $60,000 USD with the hope of more bullish run, unfortunately they've incurred huge losses, for those who may have purchased one bitcoin coin at around the time I mentioned earlier, made losses of $20,000- $30,000 USD, now imagine for those who but multiple bitcoin at that range, the sure have made really huge losses, quite sad you know.

3. High energy consumption: High energy consumption is also another decentralized system set back, because the miners require massive and expensive mining equipments in order to mine effectively and these costs a lot as well as consumes lots of energy.

4. Decentralization can lead to interference: This is due to the fact most users know they're in control, this sometimes leads to not yielding enough to instructions, and again due to the problem of sending money to the wrong account that is impossible to retrieve, some level of skilled personnels are required in these areas.

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

The Decentralized blockchain can be extremely helpful in several ways which I will be highlighting below.

BANKING SYSTEM

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The indulgence of the decentralized system in this sector will make banking far much easier than ever, we have all been used to the Centralised systems, which brings delays with sending money internationally as well as requires expensive charges for such transactions.
So having the Decentralized system in the banking sector will bring about lots of advancement, speed as well as boosten people's confidence in the industry.

*HEALTH SECTOR

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Also in the health sector, Decentralized system will help reform, initiatives in order to improve efficiency and quality of services, as well as also manage and store some really vital database on the blockchain which can also be used to buffer more solutions as well as future improvement in the sector.

*POLITICS

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This is another area where Decentralized system is highly needed especially in elections.
In my Country Nigeria, at some point in my life, I decided to personally stop voting or participating in the election process which is quite sad, and this is quite wrong on my part though but the reason is, I figured no matter the efforts made by lots of people in choosing a desired leader, the election always gets rigged, and there are always cases of stolen ballot boxes in volumes, and at the end of the day, the election is never cancelled until a new leader emerges in which lots of people didn't vote for, and this has always being the case, from the presidential down to the senatorial and even local level, it in very very few cases the election was actually fair.

So I feel if the Decentralized system is brought into this sector, and everyone registers as an individual doing KYC on the blockchain, when the election take place, each votes will be stored in the blockchain, which can never be altered or rigged, and this will surely create room for a truly free and fair elections, because the figures will be extremely accurate.

REAL ESTATE:

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The Decentralized system applied in this sector will really eradicate numerous amount of frauds, because if every land or houses are properly recorded in the system and updated if there's any form of changes like change of ownership, rental, lease and so on is place on the system there will be no room for fraudsters to thrive in this sector and rip off people, so it will really save a whole lot of good people from loosing their hard earned money.

In Conclusion

The Decentralized system is a unique system that is versatile and will truly have a huge positive impact in several sectors in a society, this will bring lots of stability, efficiency, reduction of data losses and so many more advantageous benefits as opposed to some old systems already at play.
And one of the major technology improvement achieved in this current age is The Decentralized system, the sooner we various sectors adapt to it, the better for us all.

Cheers...