Blockchain technology is trendy all over the world. If you want to know what the most important features of blockchain technology read this blog.
Blockchain is a list of records that store data publicly and in chronological order. Blockchain technology has gained significant popularity in recent years due to its features. It has been active in the tech world for quite some time now.
Although there are some mixed feelings towards it. No one can completely underestimate the role of the subject in the economic landscape. We were first introduced to this technology through Bitcoin.
It is a popular cryptocurrency; unfortunately, now, it has become more overrated and volatile than other cryptocurrencies, but what caught our attention was blockchain technology.
Blockchain doesn’t just mean a backup network for cryptocurrencies; it offers much more. Let’s find out what the main features of Blockchain are and what makes it irresistible and popular.
Blockchain technology
Blockchain technology is a system of recording information. Through, it is much more difficult to hack or cheat by changing various information and systems.
This is essentially a digital ledger system for transactions. Through which various transaction data are stored and secured in computer systems.
The process of recording business transaction volumes, tracking assets, and trading is simplified using blockchain ledger technology, whether the asset is tangible or intangible.
This network helps in virtually verifying the value and reducing all the risks involved, and reducing costs. Blockchain is sometimes known as distributed ledger technology.
It makes the history of any digital asset transparent and immutable through the use of decentralized networks and cryptographic hashing.
A significant gap between this technology from other database technologies is that data is stored through it, and cannot be modified once written; it can never be changed.
It is preserved as a clear document. As we have got a basic idea about blockchain technology, now we will discuss the features of blockchain technology.
As an example of a blockchain
We can say Bangladesh Railway Online Ticketing System. There, we buy and sell tickets through mobile apps or web usage. Payment gateways charge a fixed amount per transaction.
Payment gateway processing fees can now be avoided through the use of blockchain. This can easily transfer the entire ticketing process.
The most important thing is that the ticket blockchain will have a recent record of which train takes which route. All transactions of the entire train network, where any ticket will be sold, and when any train will depart.
Top most important features of blockchain technology
We will discuss the most important features of blockchain technology that make it a successful technology acceptable to everyone. Below, we discuss the features of blockchain technology in detail.
The data stored is Immutable
One of the most important features of blockchain technology is immutability. It stores various information with complete transparency which is not easily changed. Blockchain has made it more acceptable and popular by creating immutable ledgers.
It plays an important role in storing all the transaction information right from various business transactions. A copy of the shared ledger exists on every device in the blockchain network.
After the information is stored in a ledger through blockchain. Some of these cannot be changed as they are stored in a ledger database over the network.
They provide immutable key strength by protecting against tampering, providing security features, and transparent behavior in securing data through blockchain.
Decentralization is the most significant feature of blockchain
Decentralized technology is not under the control of any specific person, authority, or government; rather, everyone who is part of a blockchain system has their own control over the entire system.
It is also the most important feature of blockchain technology. Once a person logs into a blockchain system. They can control it by using their own secret password and storing all valuable digital information and assets, including cryptocurrencies and important digital documents, on the block.
The interesting thing about it is that no help or intervention from 3rd person or institution is required. There is almost no chance of making a mistake because after someone adds new information to a block.
Everyone connected to the blockchain verifies its authenticity and then includes it in the system. And if it is connected with any previous information in the blockchain. The system cross-checks it, so the information in the blockchain is correct.
The distributed feature will save all of the data
In this distributed system of blockchain, all information is connected through a distribution channel, and there is no possibility of data loss. and the information contained in the chain is not hidden from the people in this system, so no one can steal the information.
For example :
7 people are included in a blockchain framework. In the meantime, when anyone goes to add any new information to a large blockchain.
Then the block information will reach every computer connected to the chain, then everyone will check it to see if all the information in the block is correct, and they will verify it, and the block will be added to the chain.
In this method, the information will not be lost, as it is on many computers; the information is 100% accurate, as everyone verifies, and no one can steal that information.
Everyone connected to the blockchain is a king; no one is subordinate to anyone, and no one has more power or access, so everyone gets equal benefits.
Greater transparency topmost feature of blockchain
Greater transparency is a topmost important feature of blockchain technology. In a distributed ledger system, all users have control over all information and transactions.
Blockchain data is complete, accurate, and consistent across all users. This means that everyone in the chain will be aware of everyone’s information, and there is absolutely no chance of anyone cheating.
No one has the ability to collect or delete any data from the blockchain invisibly. Only one transaction can be completed if everyone in the chain has access
Enhanced security is an excellent feature of blockchain technology
Every transaction within the network is verified using cryptography (codes or signals), ensuring the authenticity of the information.
In fact, the security of the blockchain will be stronger as its chain or network is bigger, which means that the more people log into a blockchain system, the more powerful, secure, and valid its data will be.
Because the information contained in the block reaches everyone in the chain and is stored in the system as valid only after checking its validity.
If someone goes to hack any data in the chain, then the information reaches everyone, and everyone is alerted. It takes 10 minutes for a transaction to take place on the blockchain; in these 10 minutes, it is not possible for any hacker to hack a thousand computers.
Improved traceability great feature of blockchain technology
With the Improved traceability method, it is possible to find out the main source of any information very easily. That is why blockchain is a very helpful technology in supply chain management. As you can imagine, Unilever, Walmart, and Amazon are supplying their products all over the world.
Buying raw material from one place, manufacturing at one place, processing and packaging at one place, finally delivering the final product all over the world, then the customer receives the product.
Controlling the entire supply chain from the head office of these companies is not possible manually; there are some gaps, and it is not possible to collect all the records perfectly.
But if they incorporate it into blockchain technology, where starting from the supply of raw materials, manufacturers, suppliers, and retailers will all be included in the blockchain.
And all information will be stored in the blockchain, then whoever is anywhere will be aware of the entire process, when and where the product is.
Benefits of blockchain technology
Blockchain technology has lots of benefits. We are discussing some of the Blockchain benefits below:
- Efficiency: Efficiency indicates transactions of one register on the blockchain that can not be removed or modified.
- Reduced Costs: Blockchain can reduce costs, and its operating associations have cheaper costs with third-party agents.
- Network distribution: Blockchain can distribute your important data and raise awareness of network distribution.
- Availability: Blockchain provides higher availability, efficiency and flexibility to adjust any solution model.
- Automation: This technology can automate blockchain transactions using smart contracts.
Conclusions
Through this blog post, we have explained what blockchain technology is and what the most important features and benefits of blockchain technology are. If you like this post, then definitely share it, and if you have any suggestions, tell me in the comment box.
