Blockchain is undoubtedly one of the hottest topics of discussion in recent times. The term has gained a lot of popularity over the past few years. Blockchain technology evolved at a steady pace and is continuing to do so. Blockchain comes with its own set of advantages that prove to be extremely beneficial for a wide range of industries. It is precisely the reason why a huge volume of businesses are looking forward to utilizing the potential of blockchain technology and making the best use of the same.
The popularity of the technology is clearly indicated by the rising demand for blockchain developers over the past few years. Hence, blockchain development has become one of the most sought-after career options in recent times. Moreover, several business owners are looking forward to hiring the services of a trusted and reputed blockchain development company to make the most of the technology to benefit their business. Thus, if you are planning to implement blockchain technology into your business or wish to opt for a career in blockchain development, here are five important facts about the technology that you should be aware of.
1. Blockchain Cannot Be Corrupted
Blockchain cannot be changed, altered, modified, and corrupted because of its immutability. The immutability of blockchain makes sure that the network is permanent and unalterable. It does not rely on central authorities and uses a collection of nodes where every node present in the system has a copy of the digital ledger. Every node is required to check its validity for adding a transaction. This, in turn, makes blockchain corruption-proof and promotes transparency. Once a transaction is added to the ledger, none is able to go back and change it, thereby not permitting anyone to edit, delete, or update the same.
2. Security is Readily Enhanced
None is able to change any of the characteristics of the blockchain network for their benefit because of the absence of a central body or authority. Blockchain makes use of encryption to ensure an added layer of security for the system. The security in the network is possible due to cryptography. Along with decentralization, cryptography helps add another layer of protection for users. Cryptography is nothing but a very complex mathematical algorithm that plays a significant role in acting as a firewall for attacks.
Each of the pieces of information on the blockchain is hashed cryptographically, meaning the actual nature of the data is hidden by the information on the network. Therefore, there is a unique identifier for each data. Every block in the ledger possesses its unique hash and contains the hash of the previous block. Hence, tampering with the data means changing the identification of the hashes, which is just impossible. Thus, security is readily enhanced.
3. Blockchain is a type of Distributed Ledger
A public ledger usually provides every information regarding a transaction as well as the participant. However, in the case of a distributed ledger, a consensus of shared, replicated, and synchronized digital data is spread across several sites, institutions, or countries. Blockchain is a type of distributed ledger on a network that is maintained by each of the participants on the system. This distributed computational power throughout the network of computers ensures a much better outcome. It is certainly one of the major features of blockchain that results in a highly efficient ledger system as compared to the traditional ones.
4. It is Decentralized in Nature
Blockchain network is decentralized in nature, which means that it does not have any central authority, governing body, or a single person looking after the framework. Instead, there is a group of nodes that maintains the network, thereby making it decentralized. Decentralized nature is one of the key features of blockchain, which eliminates the need for any governing body making it possible for users to access it directly from the web and store assets. Therefore, the decentralized structure of blockchain gives power to the users to have direct control over their assets without any kind of intervention from anyone.
5. Blockchain Thrives on Consensus Algorithms
It is to be kept in mind that every blockchain thrives due to the consensus algorithms. The overall architecture of blockchain is designed very cleverly, and at its core, consensus algorithms are present. Every blockchain possesses a consensus for helping the network to make decisions. To state the same in simpler terms, consensus refers to a process of making decisions for the group of active nodes in the network. In this regard, these nodes can very quickly come to an agreement. At any point in time, where a transaction is being validated by millions of nodes, a consensus plays a significant role in helping the smooth running of the system.
Moreover, the consensus is responsible for making the network trustless. The nodes might not trust each other. However, they can trust the algorithms which happen to be running at the core of it. It is exactly the reason why each of the decisions on the network happens to be a winning scenario for the blockchain, which is one of the major benefits obtained from the technology.
Being aware of these five important facts about blockchain makes sure that you are able to make the best use of the technology. With the passage of time, companies are starting to realize the potential of blockchain technology and the benefits that it can offer. Although the technology is still in its evolving phase, we are yet to utilize its power in the best possible manner. It is expected to evolve further over time and become mainstream in a considerable volume of businesses regardless of the industry to which they belong. So, we have to wait and see what the future has in store for blockchain technology.
Ritam Chattopadhyay is a seasoned writer with over half a decade of experience in professional content writing. Ritam’s expertise in content writing has enabled him to work with clients globally on different projects. Presently, he is working with SoluLab, a premium IoT, AI, ML, and blockchain development company where he handles multiple projects as a content specialist.