I won’t be wrong to say that a decentralised economy is taking the world by storm. We have seen several developments taking place in this domain and many companies investors and traders are now accepting cryptocurrency payments. While the world is talking about the same it is also important to emphasise the underlying technology that powers this decentralisation.
We are talking about blockchain. Although the decentralise technology had long been in existence it only rose to popularity after the rise of bitcoin. Initially, bitcoin was only known for transaction execution between peer to peer but it was the underlying framework that powered this transaction.
When we talk about Blockchain technology it is important to mention that it is a decentralised technology that functions without any governing authority. The trust lies between the two users who participate in the transaction or information exchange. Initially, Blockchain use was limited to cryptocurrency exchange but later it evolved as a mainstream technology.
Today, bitcoin fine multiple applications and has stretched from food to finance health care to media, information technology to finance. So the question that arises here is what makes Blockchain so popular.
In this detailed article, you will go through the key features of Blockchain technology; read on to know more in detail!
What is Blockchain? A brief overview
In simple terms, it is a distributed ledger technology wherein the records are not stored in a central server. Instead, it is segregated throughout the network which is also termed a node. Most of us know that Blockchain is a public ledger but the fact is that there have been several developments in this domain and there are different types of Blockchain technology in existence. The popular categorisation includes:
- Public Blockchain
- Permission blockchain
The objective of introducing permission blockchain was to provide this technology as a platform for enterprise usage. Since the public ledger is open to all, it poses a threat to confidential information. Hence we have a permission blockchain which is governed by some authority or management. This thereby guarantees that the information is secure and is not hacked by a hacker or a breacher.
Key features of Blockchain
- Decentralization-It is one of the most defining features of Blockchain that differentiates it from conventional technology. This simply means that Blockchain is not governed by any authority and is free to operate in an open environment.
- Immutability: One of the primary reasons companies rely on Blockchain is its immutability. It means the data that once find an entry in the distributed leisure cannot be changed or altered. It makes a chamber free and foolproof. This makes Blockchain an infallible technology. Hence it maintains data confidentiality and is safe for the storage of information.
- Transparency: One of the key reasons companies are eyeing Blockchain is because it maintains transparency. Since Blockchain is open to all the people in the system and the information cannot be altered or changed, it becomes a transparent system that helps in generating trust amongst the stakeholders as well as from the end user.
- Security: As the world makes a move towards digitization one of the primary concerns is the maintenance of confidentiality and security of information. Since it is an open technology, anyone can penetrate the system and add an attack on the central server, ultimately leading to to permanent loss of data.
Conversely, with Blockchain one doesn’t have to face this issue. Since the information remains distributed throughout the system, it becomes difficult to penetrate it and change it at every note. This deters the hackers from entering the system and thus prevents it.
- Efficiency: The primary purpose of using Blockchain is to streamline processes. Since the members of the system can easily look at how the information is being entered and what is the course of changes, tracking and tracing of information becomes easier. This eventually improves the productivity and efficiency of the business.
Since Blockchain transfers all these features to bitcoin as well, it becomes an area of interest for most organisations. Apart from this, many investors are also eyeing investing in blockchain and bitcoin. If you, too, are willing to invest in cryptocurrencies, check out blockchainjobz.com.