Good day My fellow bluet lovers, when talking about blurt and other cryptocurrencies there is also a need to acknowledge what made them possible. Decentralization brought about a new era for mankind, it brought blurt blog and other related social media platforms to us, it brought blurt and other various cryptocurrencies to our door step. In acknowledgement of this fact, I decided to post the little knowledge I have regarding Decentralization. Sit back and enjoy the post.
Decentralization from the name alone means to break down authority from one central body to other constituents. It's practically the same thing when it comes to cryptocurrencies. Now decentralization isn't only applicable to cryptocurrencies and blockchain but to numerous aspects of life. It can be applied at work, in school and even at home but in this context we would be looking at it from the cryptocurrency aspect alone. Decentralization in cryptocurrency is made possible with cryptography, blockchain technology and some other factors. Decentralization in cryptocurrencies gives users the power to make their own decisions as there is no central body to exercise partial or fully control over our assets. This ultimately makes users more careful with their assets. In a centralized situation, let's say for example the traditional banking system they can choose to block your account, add money to your account and even empty your account meaning they exercise some control over our assets but in a decentralized situation we have full control of our assets, no one can touch our account without our keys and consent and neither can they be blocked. A clear example of a decentralized wallet is your Steemit wallet. Now more and more things are being decentralized from wallets to digital currency earning platforms to exchanges, social media platforms and so on. Enough about the meaning of decentralization let's have a look at the advantages and disadvantages of the said decentralization.
| SN | Advantages | Disadvantages |
|---|---|---|
| 1 | They enable people think and act wisely before making any decisions as there is almost no way of reversal when a mistake is made. | As mistakes are irreversible, a huge mistake can cost one to lose a fortune and go into depression or even take his/her life. |
| 2 | It ensures privacy in ones activities without disturbance from other external bodies like the government. For example, cryptocurrencies were ban in my country but we still carry out our Steemit activities as though nothing happened | Due to the anonymity of decentralized platforms, scammers and fraudsters get away with their evil doing without being caught. |
| 3 | In decentralized exchanges and wallets, there is no censorship. All the information on or about your account is made available to you unlike in centralized exchanges where they control the flow of information and can choose to censor some from you | In the case of cryptocurrencies, their prices are very volatile and are easily influenced by external factors e.g the Bitcoin dip when cryptocurrencies were ban in China. |
| 4 | Since all the responsibility are not under a central body, hackers and external attackers would not be able to gain access easily to many accounts or users. | In the case of cryptocurrencies, some transaction costs/fees are too high. Let's us the Ethereum Blockchain where their gas charges are very high. |
| 5 | Due to the way blockchain technology is, a failure in a few nodes would not affect the whole system and can be fixed back in a short while but in a centralized situation, the whole app/exchange/wallet would have to shut out all it's users until the problem is handled. | In the case of Decentralized wallets and exchanges, they aren't usually as user friendly as centralized wallets and exchanges meaning they are not really easy to use without a tutorial from an experienced user. |
There might be more advantages or disadvantages you would want to add so feel free to let me know in the comment section plus if you feel I got something wrong you can also let me know. I didn't do any research for this post but I did it from my knowledge of cryptocurrencies so far so it isn't immune to mistakes. I hope you enjoyed this. Thanks for reading.