By the end of today’s article, we will surely gather an average idea about why Blockchain Technology has been a sensation in the industry of cryptocurrencies since its discovery in 2008 by an anonymous group, named, Santoshi Nakamoto.
For those who are wondering how that will happen, the answer lies in the title.
A subject becomes a sensation either because of its advantages or because of its disadvantages. In this case, the reason is the former one.
When Santoshi Nakamoto came up with the technology of Blockchain, it’s unique structure changed the industry and the public has been in awe with its advantages since forever.
So, before we start counting the in numerous pros of Blockchain Technology, let’s have a look at the subject and it’s functioning.
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》WHAT DO WE MEAN BY BLOCKCHAIN TECHNOLOGY?
Configured to execute peer-to-peer operations, blockchain technology comprises of a financial accounting system that stores transactional information over open network, that can be accessed only by the nodules connected to the network. It is almost impossible to access the information if you are not one of those nodules and this is because the technology uses cryptograms to secure the system.
Apart from the unique protection using cryptograms, this technology is decentralised in nature. Decentralised ledger means that the system is not under the control of any central authority, because of which every computer over the established network holds equal amount of information.
Now, since we are aware of what blockchain technology comprises of, we will quickly go through the functioning of the technology.
》OPERATING THE BLOCKCHAIN TECHNOLOGY
The primary purpose of the blockchain technology is to carry out secure and verified transactions.
Once the system makes sure that the transaction that was carried out has been verified, it adds it to the record and the information instantly gets shared with all the existing computers on the network.
Before adding the transaction to the record, the system allocates it with something called hash, which is , a unique code that helps to identify it after it has been added to the chain .
Thus, we finally come to an end of understanding how the blockchain technology functions.
And, finally, we are all set to move forward towards today’s main point of discussion, ie., advantages of blockchain technology.
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》ADVANTAGES OF BLOCKCHAIN TECHNOLOGY
Lucidity is just another word for transperancy.
Lucidity has been one the major advantages of the technology. This is because unlike other centralised ledgers, in blockchain technology, the records are available to everyone on the network but a single person cannot edit or tamper with it. If any data was is to be changed then, each and every personnel on the network has to give their consent and all the data corresponding to the said data also needs to be changed.
This strategy does not only makes the system transparent, but also makes it almost impossible to tamper with stored data even if we have access to a nodule on the network.
2. EXCEPTIONAL PROTECTION
Apart from being verified before recording and comprising of a tough procedure to change the recorded data, blockchain ensures protection from outside theft as well.
The technology uses cryptograms to protect the transactional records, making it almost impossible for thieves or any central authority to forfeit or hack it.
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Standing in the 21st century, we spend every second of our lives rushing, either to be somewhere or to achieve something.
In such a generation, the age old lengthy systems of transaction turns out to be quite frustrating sometimes.
But, that is not the case with the blockchain technology. In this technology, due to the use of decentralised networking system, transactions can be easily carried out in seconds.
4. MINIMAL COSTING
As we know blockchain comprises of peer-to-peer transactions. This system cuts out the cost of involving a third party, or a mediator. This brings down the costing to a bare minimal level, and the business industry cannot be more grateful for it .
These are some of the major advantages of the blockchain technology.
However, this is not the complete list of advantages, because the technology has innumerable and minute pros and it is not quite possible to conclude each and every one them in a single article, and thus, for today, we are going to end the list here, hoping we will soon be able to discuss more of it.