Different people have different opinions about blockchain. Some believe that besides the bookkeeping during the economic crisis half a century ago, it’s the best innovation. Currently, blockchain offers an online ledger that is cryptographically secured. This allows for a transparent, safe and secure way to keep financial records.
Some people still view blockchain as a networking way similar to the TCP/IP of the 70s that allows communication between many computers. In fact, blockchain is a revolutionizing system that the sharing of data hence creating a decentralized system.
Blockchain technology is shaping almost every sector of the economy. From financial institution to industries, and businesses. The technology is useful when monitoring how goods move. Since every transaction made is recorded on a ledger, and a copy is kept in every system, the information about anything can easily be accessed. Several organizations, governments and industries have started using blockchain to store their data.
Blockchain has the following distinguishing features:
- It is decentralized – This means that it is self-sustaining and it is not controlled by any government.
- Open to the general public – all the information stored in blockchain in available to everyone on the internet. The data can be accessed easily by everyone.
- It’s distributed – it is not controlled by a central point. It is managed by the members.
4 Qualities of Blockchain
The following qualities make blockchain technology very special as compared to other technologies.
(i) Consensus – blockchain creates a platform where many people can access the same information at a time. This makes the information to be open for scrutiny by all. The unique thing about the shared information on blockchain is that it can be made available to everyone on the internet at the same time. this eliminates the need of a central point.
(ii) Proof of Work – whenever a transaction is made, the information is made immutable by confirmation. Any file that is found to contain false information is deleted. A file is confirmed through a consensus and a confirmed file is shared through the network. Once information is confirmed, it cannot be changed.
(iii) Keys – every action that is carried on the blockchain requires a key for authentication. Every member has a private key. The keys ensure that nobody can access the information. For this reason, blockchain is very secure. With the increase in cybercrime, blockchain will help solve this problem forever.
(iv) Its digital – blockchain is created using codes which make it not only dynamic but also flexible. Because of the way it is created, it cannot be controlled like physical currency. In addition to that, it can be improved or updated unlike cash.
The Challenge Scalability
What is making blockchain technology stand apart from the rest is its ability to keep copies of every transaction. In addition to that, it is authentic, secure, fault tolerance and being politically neutral. However, it is facing the challenge that as it continues to grow, more space is required for storage. It also requires high power to run it. As compared to the internet, it has a wide area of application. Anyone can take advantage of the blockchain technology and come up with more competitive services or products.
Moreover, blockchain is an efficient technology that is changing how businesses are done and it ensures fair distribution of data. In short, it is changing the way the existing technology works. The existing technologies are becoming obsolete while the new blockchain technology is giving every aspect of human life a new aspect.