We must understand in brief about blockchain technology and then you can understand better about the importance which we will discuss in this article. If you have ever wondered about how the blockchain might impact your life then this is the right article for you. Blockchain has become the talk of the town now and gained worldwide popularity.
Blockchain gained publicity after the
introduction of bitcoin and its rapid price rise. Blockchain is a decentralized ledger that has a record of all the bitcoin transactions. There are some key features of blockchain, and you can understand its significance once you go
Key features of blockchain
- Immutability- the blockchain system has been designed in such a manner that it cannot be mutated in any manner. Blockchain is completely immutable. This feature makes the blockchain a very highly secure system. Immutability ensures that no hamper occurs to any product in transit. This feature only makes sure that the workability of the blockchain remains top-notch. Any disturbances can be tracked and traced in an immutable system.
- Transparency- one of the most important features of blockchain is its transparency. Anyone can join the blockchain and view all the information and transaction history of exchanges that he or she has made. Blockchain provides transparency because it is not regulated by a central authority. It is for the benefit of the security vendors, regular users, the govt., etc.
- Digital freedom- The most important right that we as human beings crave is freedom. The centralized modes of economic connectivity offer a good range of prospects but also take away our freedom. For example- a bank can hold back a transaction or close or account on its own accord as they deem fit. Blockchain being a decentralized ledger system will offer you digital freedom where you can be your bank. You do not require any intermediary body to process your transactions or grant you permission for an exchange. Digital freedom depends entirely on blockchain technology.
- Decentralized medium- We can consider decentralized services as the new future. Soon enough, every sector will be able to provide a decentralized service to its consumers. This will accelerate the process of receiving any service by eliminating the third party in the middle. The processing often takes time or the event gets canceled due to the presence of a third party (central authority). Its absence will make everything much easier and faster for all.
- Variable Use- Currently, blockchain technology is focused mostly on crypto-based transactions. Bitcoin transaction was the mother of blockchain technology. Blockchain technology has a lot of potential and in the future, it can be used in every sector. In other words, blockchain has a very wide range of applications. We have seen one such recent use of blockchain in the seafood industry. They have introduced fishcoins to impede the drawbacks and issues in the seafood trade. Rumor has it that blockchain might replace the internet in near future.
- Affordable- We can say that blockchain technology is not as expensive as other technologies. Blockchain technology does not run under any authoritative institution, which is why the cost of running the network gets cut as well.
- Security- There are powerful computers that solve complex mathematical algorithms to maintain the integrity of blockchain technology. The cryptography involved along with the decentralized nature provides another layer of security to this system. Each block on the network has a separate and unique code that ensures complete secrecy and security of the stored data.
Blockchain is extremely efficient in terms of better security, the absence of an intermediary body, etc. Transactions and exchanges are very swift and can be done using apps and websites like this automated trading app. All these features make the blockchain an extremely ideal system that can be introduced in all sectors for the benefit of the common people. Blockchain is an ingenious technology. The initial costs of implementation might be a bit high but it will prove to be inexpensive for the longer run.