In this task ill be answering the second question which is

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)

decentralization

---

Decentralization is the opposite of centralization where power and decision making is bestowed on one person which is the central authority. Every other person in the system obeys what they say.

Let take a look at social media that is a centralized system we find out the account of every individual is under the custody of the central authority, as your account will be banned if you go against the community rules without seeking your opinion. Also, take a look at the bank sector the affairs of every other banks are controlled by The central bank.

But it's not so in the decentralized system here everybody in the system has the right to make a decision and have freedom as well. Here every department linked to the system have privacy meaning that other unit does not have the power to interfere.

Let look at two different definitions of decentralization before relating it to the crypto space.

Decentralization alludes to tire precise work to delegate to the most reduced levels all authority aside from that which must be practiced at essential issues.

Or we can still say it is a matter of splitting up the managerial work as well as allocating specific assignments to several executive skills

Relating decentralization in the crypto space blockchain enhanced the decentralization by allowing the operation of bitcoin as well as other cryptocurrencies eliminating the need for a central authority. It has been of help not only diminishing risk but also lowering transaction fees.

Looking at Cryptocurrency being decentralized it means that it's protected by cryptography which makes it not possible to falsify it just like paper money or to double spend it. It's decentralization in cryptocurrency that brings about trustworthiness. In general decentralized cryptocurrency will be more stable and survive long for you to gain from miming than more centralized and distributed cryptocurrencies.

a decentralized framework that works on the blockchain is constrained by no single position, nor is it upheld by any unified government or country state. All things being equal, control is conveyed decently to anybody that needs to utilize the framework. This makes society more attractive as it removes control from incredible partnerships.

People don't need to specify themselves to interact with a decentralized network. They utilized private ss well as a public key which means that they can continue to be anonymous.

comparing centralization and decentralization

---

• In terms of controlling the centralized system is controlled and managed by a central entity while the decentralized system is managed by many units.

• in terms of security the centralized system is weak and is prone to hacking while in the decentralized system security is strong therefore making it difficult to be compromised by hackers.

• in terms of decision making, the centralized system is slow in making decisions and it is been executed by the central authority. While in the decentralized system decision making is quickly and also been carried out by Multiple people in the system.

• in terms of privacy in the centralized system there is no form of anonymity. Why the decentralized system offers anonymity to its users.

• in terms of communication, centralization is vertical in communication. While the decentralized system is open and free in communication.

advantage of a decentralized system

---

• data is kept and can not be changed. There is a high level of transparency and records are always kept open

• decentralized system solve trust issues as it empowers multiple parties to govern the network. Also users do not need to trust central authorities.

• it eliminates fraudulent activities as a third party in a transaction is not needed. Your information can not be accessed by a third party.

• the transactions that take place in the network is public is seen by every one.

disadvantage of a decentralization system

---

• The rate of crime in Decentralized system is high due to its anonymous nature. The reason is that since it is decentralized and hides your identity scammers prefer utilizing this medium for transactions.

• storage problem for people who are new to the crypto space newbies find it difficult to create a wallet and transferring of currencies from one wallet to another.

• also issue with account recovery your password has to be stored safely because if you lose your password your account can't be recovered.

area of life were decentralized blockchain can be helpful

---

• Health sectors

---

Blockchain execution in health care can be used to effectively register and traces the medical data of thousands of patients. Also, patient records will be kept safe as well as to avoid patient data falsification.

Still In the health sector execution of blockchain execution can give a Reliable strategy for tracking pharmaceuticals through the whole manufacturing with distribution process, therefore reducing the global issue of drugs faking

---

• government Voting

---

Blockchain should be utilized in voting as this is the only way rigging of elections can stop. Blockchain will help to capture only one vote per individual and publish the data for all to see due to its transparent nature. Utilizing blockchainn in voting system due to its anonymity, there won't be any form of threat from the government.

---

• payment system

---

This is the idea behind cryptocurrency coming into existence before now payment is done utilizing banks all banks employ a centralized server which means that they have record or access to your whole financial activities they know how much get into your account daily, transactions made, who sends money to you etc. All these are connected to your bank account.

If the centralized bank server is hacked which happens most times they will have a way to your information or if the centralized server fails which also occur your access to your money could be restricted.

A decentralized payment system will put all these problems to an end, When you utilized a decentralized system like crypto to send or receive payment you eliminate the need for a third party or wait for your transaction to be confirmed by a third party.

Your money is safe while using a decentralized system of payment because you are the only person that has access to your money and the private key which nobody else can know unless you expose it.

---

• final taught

---

Blockchain and decentralization have been of great importance today because of their transparency, security, scalability features utilizing them in all most all sectors can help reduce malicious acts.

This is a great topic taught by the professor I have tried to write this assignment in my understanding.

Thanks for reading through.

Cc @nane15
@dilchamo

#club5050😀