Blockchain is an indisputably ingenious technology that everyone is discussing today. It is no more misinterpreted as support to cryptocurrency but has evolved as a promising technology to lead the next generation.
With its unique key features, Blockchain Technology is undeniably an ingenious invention that can be encompassed in every existing industry across the globe.
Four main aspects are important while considering the Blockchain Technology.
Decentralization: It is not owned by a single entity denying centralized authority.
Security and anonymity: The data is encrypted peer to peer and is stored cryptographically in the blocks.
Immutability: It simply implies that the data is unchangeable by a single entity and it cannot be edited, updated, or deleted once recorded. This reduces the risk of malfunction in data.
Transparency: The data is visible to everyone; thus, it permits transparency within the network.
Apart from the above features, blockchain technology provides security and is non-expensive, thus, highly preferred for secured transactions and for making smart contracts.
The most important aspect of this technology is that it is fully decentralized. No single authority controls the data. A common consensus protocol is run on the network, which follows the decision to record and store data.
The Consensus Protocol is the set of rules for communication or transfer of data on the nodes.
This consensus is achieved when all the nodes agree to record the information on the system. After this validation, the data is relayed on the system visible on every node or device with multiple copies available on every node. Because of this consensus algorithm, data cannot be manipulated or tampered by a single user.
Security and Anonymity:
Privacy and anonymity is one of the foremost reasons behind the admiration of this technology
Since the evolution of the internet, individual data and privacy rights are in jeopardy. The users are compelled to accept cookies and their private data is being used for marketing and promotions without their knowledge.
Blockchain technology sets itself apart from these traditional exploiter models of users. Blockchain doesn’t need any identity, name, contact number, email address, or anything for downloading or for utilizing the technology.
This means no information can be stored and thus, the anonymity of the user is maintained, unlike the current clouding system. It means more security and less risk towards sensitive data breaches.
This feature is very important for individuals as well as for big corporations that have volumes of data in storage. The sensitive data is least vulnerable to hackers and other financial frauds with the application of blockchain technology. The identity of the users and the transactional details are stored with cryptographic code and the key is controlled only to the users.
At the financial institutions like banks, there are private blockchains, wherein the data of the users or other sensitive information is available only to the entities within the network.
Blockchains for Secured Payments
Payment through blockchain is one the safest and fastest get ways to carry out transactions. The blockchain payments are done through blockchain wallets through the peer to peer system. These wallets are easy to download, secured, not controlled by central authorities, fastest without any network dependency with no processing charges.
Four kinds of blockchain wallets are being used as per the convenience and individual needs of the users: Software wallets, Hardware wallets, Web wallets, and Paper wallets.
What is a Smart Contract?
Smart contracts are peer to peer self-executing agreement between two parties or two individuals written in terms of codes. The agreement or the transaction is carried out without third party intervention or authority. Both the parties have the key to the code and the transaction details are visible without any reversible process.
These contracts possess all the features of blockchain technology. They are encrypted, immutable, decentralized, transparent, secured within the network having an address or location on the particular blockchain.
No transactional charges are involved plus as they are written in automated code, so are less time consuming with the least paperwork. They are easy to execute and fast in operation.
Application of blockchain in various sectors
With the above unique features, Blockchain can play a pivotal role in transforming the existing corporate, governance and societal structure. Blockchains can be installed in possibly every industry, apart from finance and trade.
Certain Blockchain consulting services can be instrumental in deploying blockchains technology solutions. One of the leading names is Blockchainmarketingninja.com, which provides strategic services for blockchain technology.