Crypto Academy Season 3 Beginners'Course - Task 2: Blockchain, Decentralization, Block explorer @bubbling

Hello!

I'm starting the second of the Crypto Academy Season 3 Beginner assignments today. I am sure that it will be very instructive and will improve us all in this regard.

The subject of assignment;
Define decentralization. Describe the advantages and disadvantages of a decentralized system. In what areas of life can a decentralized blockchain be helpful?

I will try to answer these questions about this subject in my own words, I hope you can gain new information.

DECENTRALIZATION

“Decentralization” is the name given to the process of transforming the power of a central authority into a decentralized one. Most financial and government systems currently in existence are centralized. In other words, decentralization is about transferring control and decision-making from an individual, organization, or group(a centralized entity) to a distributed network. Blockchain technologies often use decentralized networks.

In many countries, there is a central bank for the authority that supervises the financial system. Over the years, some of the drawbacks of centralization have emerged. However, Bitcoin was created by Satoshi Nakamoto as an alternative to central governments' fiat currencies. The fact that it allows sending and receiving money and trading independently and it is more flexible and democratic than traditional currencies.

DECENTRALISATION IN BLOCK CHAIN

First, blockchain is a distributed and decentralized system that stores data such as transactions and shares that data publicly across all nodes of its network. Blockchain technology allows decentralization because it offers every user the opportunity to become one of the network's many payment processors. Many cryptocurrencies adopted a decentralized management model and used blockchain technology. Thanks to decentralization, everyone saves data and has equal power. So, it is a fair and transparent system.

ADVANTAGES AND DISADVANTAGES OF DECENTRALIZATION

ADVANTAGES:

When you use cryptocurrencies to send or receive money, you do not need to rely on a third party to confirm the transaction.

Fees are significantly less, even completely free in some cases, as there is no need for a third party. This makes cryptocurrencies a great choice when sending money to or from someone in another country.

Your money is safe because you are the only person with access to your money because only you have access to your private key. If you take the right security measures, no one can access your private keys.

To sum up;
✓ Third-party does not have access to your information
✓ Fast and cheap transactions globally
✓ Transparent; Anyone who wants can view the transactions taking place on the network
✓ Safe
✓ No central breakpoint

DISADVANTAGES:

There is too much energy consumed and very expensive computer systems are being run. Also, system maintenance requires skilled professionals with a high technological understanding, it costs too much money.

Authority is spread around the organization, this situation may cause coordination problems.

Users may suffer the consequences of bad decisions, as people's decision-making skills differ from each other.

IN WHAT AREAS OF LIFE CAN A DECENTRALISED BLOCKCHAIN BE HELPFUL?

Health Sector: Thanks to developed devices and assistive technologies, people can monitor their health status from their homes. Blockchain technology is beneficial in the areas of patient privacy and distributed storage of information. For routine doctor controls, a decentralized system allows doctors to obtain the data of the patient from the blockchain system.

Banking Sector: This system provides significant advantages in terms of cost, speed, and security. All transactions in smart contracts are carried out electronically by computer systems and they are transparent.

Real Estate Sector: Traditional real estate systems involve time-consuming and risky processes. In addition, waste of paper and wet signature as required by legal obligations. There are also such requirements. Thanks to smart contracts, trading can be done without the need for a third-party institution and transactions can be transparently stored in digital ledgers.

Educational Sector: All grades and data about students have been stored thanks to this system and students can see their grades. Educational content, course credits on the blockchain
and certificate information can be stored and shared in a distributed structure.

Politics: In past times, there were many reports in the media that the voting was manipulated after the election. There was even an investigation into the government somehow manipulated the transaction. But since the public can't see the voting data, there's no way for people to know if it's real or not. The solution to that problem is to perform the election in a decentralized system. Since the system will be transparent, all voters will be able to see where each vote came from. It will also ensure that people vote for just one.

CONCLUSION

I learned a lot of things about decentralization blockchain technology, this is a great lecture so thank you very much to the professor @yousafharoonkhan for this helpful lecture.