Blockchain isn’t just a new technology. Blockchain can be regarded as the combination of much proven and effective technology implemented more robustly and dynamically. The core technologies that lay the foundation of blockchain technology are internet, cryptography, symmetric cryptography and asymmetric cryptography. Blockchain technology doesn’t rely on any central regulatory authority to approve the transaction and is 100% secure.
Blockchain technology has the potential to disrupt many industries that leverage any record-keeping system for their proper operation. This technology is geared towards transforming the methodology through which the businesses are usually done across the globe.
To remain competitive in this tech world, I strongly recommend all the readers to get their hands dirty with this revolutionary technology blockchain.
For the sake of convenience of my readers, I’ll be listing none of the most prominent
industries that would most likely to be disrupted by the blockchain technology:
- Financial Services Industry
- The Health Care Industry
- Real Estate Industry
- The Banking Industry
- The Legal Industry
- The Cryptocurrency Exchange Industry
- Video Industry
- Ed Tech Industry
In this short and brief article about blockchain, I’ll be discussing all the key benefits of blockchain technology in order to make my readers realize the immutability, security, scalability, privacy, transparency, and traceability of the blockchain technology. I want my readers to make them understand how they can harness the true potential of blockchain technology.
Advantages of Blockchain Technology
Blockchain technology can be conveniently used as an effective source of record keeping. Here are the potential advantages of the phenomenal Blockchain technology.
Typically, consumer needs to pay a bank for the successful verification of the transaction. Blockchain technology reduces the reliance on the central regulatory authority for verification of the transaction thereby reducing the cost associated with it. For instance, business owners need to pay transaction charges whenever they accept the payment through credit card as the banks have to deal with all the technical aspects of the transaction. Conversely, bitcoin does not rely on the central regulatory authority for the transaction processing and doesn’t impose any transaction charges.
Blockchain technology doesn’t utilize any central database for the effective storage of information. Instead, the information is stored on the peer-to-peer system within the blockchain ecosystem. Blockchain ensures the highest level of data confidentiality by spreading the information across the whole network instead of relying on the central database for the storage.
Faster and Efficient Medium of Transaction
If you have ever used the conventional financial system, you’ll experience that the transaction processed through the conventional system might take a little bit of extra time to process. For instance, in the case of the conventional financial system, if you deposit a fund into your account on Friday, you’ll receive that funds onto your account on Monday. On the other hand, transactions can be completed within a few seconds if you leverage blockchain technology this attribute makes a lot more effective and secure platform for the cross-border trade.
Blockchain technology behaves like a public database. It means any user who has an internet connection can access the detail of all the past transactions. Even though blockchain technology facilitates data accessibility, but the identity of a person performing transaction remains anonymous. It is a common misconception amongst an individual that blockchain technology is completely anonymous, but in reality blockchain technology pays special heed to the confidentiality of the transaction.
Once the transaction is successfully executed within the blockchain ecosystem, the authenticity of the transaction is verified by the blockchain network. Millions of computers within a blockchain network ensure the authenticity and correctness of the transaction. Once the transaction is validated by the blockchain network, it gets added automatically to the blockchain network in the form of a block. Each block within the blockchain network contains three basic components including the transaction value, a hash value generated by the cryptographic hash algorithm, and the hash value of the previous block.
Whenever anyone tries to tamper the information stored within the block of the blockchain network, its hash value will change, but the hash value of the next block remains intact. This discrepancy within the blockchain network makes it almost impossible for the hacker to modify the information stored within the blockchain.
Even though blockchain technology ensures the highest level of security, but to be honest to say blockchain is completely open-source. Owing to the fact blockchain technology is completely open-source, it allows developers and coding ninjas across the globe to make any modification within the code of blockchain.
As millions of computers are always active in the blockchain network, it is unlikely that anyone would make a change without the consent of all the members of the blockchain network.
Each block of information is stored within the blockchain network through the hash value that is generated through the cryptographic hash algorithm. This peculiar attribute of the blockchain technology ensures that the information stored within the block of blockchain cannot be modified.
Undoubtedly, immutability is the outstanding feature of blockchain technology. Immutability brings a lot more integrity and trusts to the data by redefining the overall data auditing process.
Blockchain has played a vital role in user empowerment. Blockchain technology has widely disrupted the financial services industry through the peer-to-peer electronic transaction system known as bitcoin. Blockchain technology stored the user data digitally in a way more secure and robust way so no one can modify the stored data in any way. As the entire blockchain technology is reliant on the central storage system so there is hardly any loophole within the system that can be exploited by the hackers to perform malicious activities. Some experts argued that blockchain technology will become an essential part of the internet in the next generation.
Blockchain technology provides a more robust, dynamic, and retrievable way to the user to store their data. Aside from these attributes, users can frame a specific policy for data accessibility which means who can access the data and for what purposes.
So far we’ve discussed a bit about the key features and the core aspects of the blockchain technology, and the benefits which the user can gain through adopting this phenomenal technology such as data traceability, security, transparency, immutability, and record maintenance.
I positively hope that this guide will behave as a turning point for your life, and you’ll take some serious measures to learn this technology so you can properly leverage this ever-growing technology.