For all of its complexity, blockchain’s potential as a decentralized form of record-keeping is almost without limit. From greater user privacy to heightened security, blockchain technology may very well one of the greatest creations that have ever been created. Here are some of the selling points of blockchain technology.
Take bitcoin as an example, all the transactions made using the blockchain network are ratified by a network of computers. Nearly all human involvement in the verification processes is eliminated. This results in much lesser human errors and yields a better accuracy in recording the transactions. Even if a mistake occurs, it would only occur in one of the computers. This is because after the information is registered, the record will be sync across every other computer in the same network. If the record were to be altered, the altercation has to be made in at least 51% of all the computers in the network.
In most transactions that require third-party verification, a fee is needed to verify those transactions. With blockchain, there would be no need for such third-party verification or any cost. Whenever we use credit cards to make any payment, a small fee would incur where the fee is used to pay off the banks or third-party companies that process the transactions. Blockchain does not have a centralized authority that requires such fees.
The biggest selling point is the decentralized nature of Blockchain. The information is not stored in one fixed location but duplicated and spread across thousands of computers in a network. Every computer will get an update whenever there is a new block of information being added to the chain. By having the information spread in a network of computers, blockchain becomes relatively harder to hack. If any hacking job is attempted, the information will only register the change if more than 51% of the computers agree on such changes, meaning, the hacker would have to hack into more than 51% of the computers in the network in order to make such changes in the transactions.
Efficient, Private, and Secure Transactions
Making a transaction is never the same if you are making it through blockchain. Conventional banking transactions can take up to days to complete. If you deposit a check on Friday, there is a good chance that you will only see the money credited in your account on Monday, as the banks typically do not work on weekends. Blockchain operates 24/7, every day in a year, without any breaks. Any transactions made can be settled within 10 minutes, the transactions can be considered secure after the record is uploaded to the network of computers and added to the chain of information. This is optimally useful for international trades, which take a much longer time due to different time zones and the presence of all parties to confirm the payment processes.
Most blockchain networks run as public databases. This means that whoever has an Internet connection can access the list of the transaction history. Although the public can view the details of the transactions, they cannot identify the information about the users that made the transactions. The blockchain network is not anonymous, they are only confidential. When a user makes a transaction, a unique code which is known as a public key is recorded rather than the personal information of the user.
After the transaction is registered, the authenticity of the transaction has to be verified by the network of computers. Thousands of computers in the network would confirm the details of the transaction and validate it after. The transaction would be added to the chain after that. All blocks on the blockchain have their special hash, together with the special has of the block preceding it. When alteration occurs on any block, the hash code of that block would change, but not the hash code of the blocks after it. The inconsistency makes it harder for the information on the blockchain to be amended unannounced.
Concerning a point mentioned above, blockchain operates on open-source software. This grants anyone access to viewing the codes in it. This provides the relevant parties to analyze cryptocurrencies. There is no actual authority controlling the codes of the blockchain or how the information is edited. Due to this fact, anybody can propose any suggestions on changing or updating the system. Changes can be done if a majority of the users in the network agree on such changes. This is also to make sure that all altercations are done at the discretion of all the involved parties.
According to relevant research, there are almost 2 billion people do not possess a bank account or any manner to store their money. Most of these people come from developing countries where the economy is not as solid and are largely dependent on cash. These people normally earn minimum wages and are usually paid in cash. They often resolve to keep their money in hidden spots in their home which leaves them vulnerable to crimes like robbery.
What is good about blockchain is that everyone can use it regardless of ethnicity, culture, or gender background. The keys to a bitcoin wallet can be kept anywhere, such as paper, a mobile phone, or even memorization. for the majority, this is probably a better option than hiding piles of cash in different locations of their own home.
Blockchain is still a growing advanced technology. At present, it not only acts as an element to store wealth but also medical records and a wide range of different legal rights and contracts. Imagine what it can do after some more promising progress is done to better the technology.