Why is Blockchain Technology Important?
Blockchain technology has been a hot topic in recent years, revolutionising the way we do business in various industries. Let’s delve further into its importance, unique nature and key advantages.
Decentralized Nature
In Blockchain, an assortment of computers make up a network and computing power is distributed evenly. By distributing, the risk of tampering, fraud and cyber crime is vastly reduced as the inclusion of more nodes mean that the system is harder to ‘take down’.
Promotes Trust & Transparency
Currently, a central entity in a financial institution keeps records of our transactions, representing as a ledger. What if 2 parties that don’t trust each other want to make a transaction without going through this central entity? That’s where Blockchain comes in. The technology allows both parties to conduct a transaction by distributing the ledger to many nodes and syncing this ledger via Consensus. This opens a wide range of possible transactions that couldn’t have happened without a central entity before.
Immutable
The immutable factor in Blockchain ensures that the data does not get manipulated, replaced or falsified in any way, shape or form. Any agreed and shared transaction across the network is also near impossible to undo. This helps in situations where certain data needs to be tracked accurately and efficiently.
Decentralized
The need for intermediaries and third-parties are reduced with Blockchain. This also helps to reduce costs by eliminating these middlemen. Efficiency is also increased as transactions are conducted between peers
Conclusion
Blockchain technology has many advantages and is constantly being explored for further applications. A strong application is currently the use of cryptocurrency on the blockchain where you can trade and store digital assets
