I have just started learning about blockchain and found that Ethereum offers two key benefits: smart contracts and decentralization. I tried to understand the benefits they provide and why these benefits could not have been achieved using existing tools, but I could not find a convincing answer. Can someone explain these concepts in more detail?
Smart Contracts I understand that smart contracts make code (logic) public and fixed. But isn't this similar to open-source code? Could the same functionality not be achieved by publishing the source code and adding a sequence of transactions to it?
How do smart contracts provide additional benefits beyond traditional open-source software, and why are they useful for automating transactions without relying on a central authority?
Decentralization Does decentralization provide more control to the owner while avoiding a single point of failure (SPOF)? If so, how does it work?
Although the code and some data may be distributed, many applications still rely on centralized resources, such as private keys used to sign data, software licenses, and APIs connected to other modules.
How can an application that relies on a private key be considered decentralized? Even if the system is replicated across several failover nodes, the private key could still be revoked or withheld by the vendor, meaning control remains centralized.
How does decentralization work in such situations, and what practical benefits does it provide?
I'm also interested in understanding how smart contract development services help address these challenges by designing applications with transparent execution, secure access controls, and reduced dependence on centralized infrastructure.