It is a recording of transactions and assets in a professional manner. It is a digitally shared ledger database. Bitcoin and crypto currency transactions are being recorded in a systematic manner in numerous computers and these systems are linked together.
It is a decentralized form of database where all the data is collected and kept in small units in different forms and places. In the era of investment over employment, people buy and trade more in crypto currencies, digital currency, forex trading etc.
The blockchain technology works by creating blocks. These are the places where the database is being recorded. These blocks include the cryptographic hash of the predecessor blocks with translation history. The information stored in these blocks are kept private and are highly secured.
Advantages of Blockchain Technology
- Security
Blockchain technology is highly supervised for maintaining the privacy of the database and information stored in it. Data is sensitive and confidential and blockchain diverts the way information is authenticated. It provides end to end encryption thus preventing frauds and fraudulent schemes.
Invasion of privacy is eliminated in Blockchain. It anonymizes the data of users and provides permission grants option to give access to information. Blockchain is packed with security because the data is stored in numerous computers with numerous software’s though making it difficult for the hackers and fishers to steal it.
- Payment and Money Transfers
Since BlockChain is safe, payment and money transfers can be easily done. It is secured for payments and transactions made over the block chain are completed in fraction of seconds, thus eliminating the bank fees and over expenditures. It is a time saving and money saving platform for transactions.
- Digital IDs
Yet another security feature of blockchain is access to data. Blockchain technology allows the users to determine who can access their data and information. The users can determine and control their digital identities.
- Data Sharing
Blockchain helps to secure sharing of data. It acts as an intermediary between the transferrer and the transferee. It provides the facility to store and transmit data among industries and businesses.
- Healthcare
Blockchain can help a lot in healthcare. Scientists and doctors are using blockchain to handle medical trials information and electronic clinical report records.
- Efficiency and Speed
Manual paper method of recording the transactions is cumbersome, tiring, error prone and time consuming. Sometimes assistance from a supervisor is also required. This traditional method when replaced with time saving, error free, easy, faster mode of block chain technology.
This system also saves paper. The information is stored in this with complete details and with greater efficiency. The manual long and filled ledgers are not required; therefore the settlement is made easier since searching a single word can provide the information of it with certainty.
- Trust
One of the major things in today’s era is mutual trust. The block chain maintains trust among different firms and business entities. They willingly deal with each other which includes information sharing or transactions over the block chain, for which they otherwise had to find an intermediary.
- Immutable
Immutability in block chain implies the transactions cannot be edited, deleted or deformed once recorded on the block chain. It is like a permanent record that stays forever with timestamp and date stamp. It also helps in tracing information based on time and date or in chronological order. All the information or data stored is accessible but not editable.
- Tokenization
It is a method where the value of assets is being recorded in digital token form. The token possesses some value of the currency and unit measurement. The asset value is converted into a token unit and then recorded and stored in the blockchain.
- No Censorship
This blockchain technology is free from censorship. It is not ruled and owned by an individual owner, instead it works on trustworthy notions for census procedure and the transactions are accepted by using smart contracts.
- Verification
The technology stores data in a decentralized form such that everyone can verify the completeness and correctness of the information. One can verify the data even without any prior knowledge of it.
- Stability
The data is in stabilized form in Blockchain. This feature allows the financial institutions to store its data in the blockchain without any major concerns. Any important information of the financial institutions or multinational companies can be kept safe in trustworthiness. The data over here is never stolen, tracked, hacked or traced down by hackers and fraudsters.
- Open to and for all
Another major advantage of the Blockchain technology is that it is open to and for all. Everyone can easily be a part of it and access its high profile services with utmost faith. To become its member, no permission is required or granted from anybody. One can easily join the network. Also the technology is open to all. It is a transparent working system and anyone can do a check on its working.
- No Meddling
No one can meddle with the currency value of the blockchain. Neither the government has any control over it nor do the banks or financial institutions have any overstatement towards it. Though having numerous or maybe endless benefits, the Blockchain technology also has some disadvantages.
It requires a lot of legal formalities to be accepted by the governments of different countries. Many countries have given acceptance to it but some alterations have been made in the policies. Some countries are yet to accept it.
Efficiency and correctness is most important in it. While preparing a block the miners have to compute the correct values and have to be extra precautions because once the data is entered it cannot be altered or edited easily. So as to make the data error free, a lot of time investment and intellectual presence is highly required.
Interesting facts
- Microsoft is experimenting with block chain technology.
- The global blockchain market of 2020 is $20 billion approx.
- Blockchain networks can be either public or private.
- Countries in which bitcoin is banned are: – Saudi Arabia, Morocco, Algeria, Nepal, Bangladesh, Bolivia.
