Question

Write a thesis on "Blockchain & Decentralization". Decentralization is important to create a secure, non-discriminatory system. [5000 words at least ]

Answer 1

A blockchain is basically a decentralized distributed database which maintains a chronological chain of blocks. Any operation which causes or triggers a change of state within the blockchain can be termed as a transaction. There are two key concepts inherent to any blockchain platform, transactions, and blocks.Transactions are used to facilitate the transfer of value or assets between various actors involved in the system, whereas the blocks are a means to synchronize the state across all nodes.

The order of transactions Iin a blockchain among all the nodes must be the same and should be preserved to keep the copies of ledger consistent. A random node is chosen to create the next block and this node practically imposes its view of the new state of blockchain over other nodes.

Blockchain-facilitated social decentralization can potentially redistribute and re-democratize patterns of human participation and cooperation. Blockchains are not controlled by a central authority, but by the entire network of participants, who establish the rules for participation themselves and can elect to evolve the system according to consensus.More importantly, blockchain-supported technologies can potentially facilitate decentralized coordination and alignment of human incentives on a scale that only top-down, command-and-control structures previously could.

Decentralization is the process of dispersing functions and power away from a central location or authority. In a decentralized architecture, it is difficult if not impossible to discern a particular center. The World Wide Web was originally developed as a decentralized platform. Blockchain technologies such as Bitcoin and Ethereum are examples of decentralized architectures and systems.