Blockchains are increasing their popularity in the world today. People are finding new ways to use the power of blockchain technology which can help them in providing solutions to real-world problems. Blockchain technology has a lot of important features that allows it to offer secure functionality.
In today’s world , in every sector like financial services or government or healthcare or many other industries are trying to explore different ways to use Blockchain to disrupt and transform traditional business models. There are many industry leaders who already have found significant business benefits with Blockchain, which helped in greater transparency, enhanced security, improved traceability, increased efficiency and speed of transactions, and reduced costs.
What is Blockchain
Blockchain is a chain of blocks, where a block consists of data information and the chain is like a database. The Blockchain technology was introduced by Stuart Haber and W. Scott Stornetta in 1991 . This chain of blocks which is called a ledger, records and lists the data which is then transferred amongst the different nodes or the participants. Each of the nodes who are participating in the blockchain is able to see the whole information. For more details you can read our blog on what is blockchain.
Advantage of Blockchain
Many companies have started using blockchain and it is growing across the globe. Companies like IBM and Voatz have started using Blockchain technology and soon there will be a huge number of job openings for Blockchain Developers. But why are companies using Blockchain technology ? Let me tell you the 5 advantages because of which every industry is looking forward to implement blockchain.
1. Blockchains has data transparency
One of the biggest advantages of Blockchain is that it is shared with every participant of the blockchain. Blockchain is a distributed ledger so all the network participants have access to the same data. So anyone in the network can see the data of the blockchain. Data on a blockchain is totally transparent to all the participants. Whenever a new block is added in blockchain, every participant follows the step of consensus to make sure they are reaching the same conclusion.
2. Data Security
To tamper a single transaction record would require the alteration of all subsequent records. In blockchain, if you try to change any data, you need to change the data of all the blocks and with that, you also have to convince other participants to change the data in their copies of the blockchain which is almost impossible and time taking. So tampering data is very difficult in blockchain technology. Any hacker trying to hack a blockchain needs to hack all the copies of the blockchain which is there with different participants of the blockchain and which is quite impossible.
3. Advantage is Reliability
As Blockchains are distributed between all the network participants, so it does not have a central point of failure. So if the system of any participant of a blockchain fails due to any reason, then still we will be having other copies of it with other participants.
4. User Control
In blockchain, every user has control over all the information and transactions. Also, each and every user has the same and equal information. Whereas in Database users with different permissions have different access to the data.
5. Open source
Blockchain is an open source software, which reduces entry barriers, leads to a stronger developer base and enhanced transparency. Open source software is always shared freely, collaboratively produced, transparently developed and published for the community’s good instead of profiting a single person or organization. There is no single individual or company that develops, sells or owns the software which removes any chokepoints or bottlenecks in the open source software development process. Similarly Blockchain is also an open source software which can be developed by an individual or company.
So these are some of the Advantages of Blockchain Technology. You can follow us for more blogs related to Blockchain and also subscribe to ZappDesk YouTube Channel where we post videos related to different technologies.