Why Is Blockchain Technology Important?
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Blockchain technology has been a hot topic in recent years, revolutionizing the way we do business in various industries. Let’s delve further into its importance, unique nature and key advantages.
Decentralized Nature
In a blockchain, an assortment of computers make up a network, and computing power is distributed evenly.
By distributing a ledger, the risk of tampering, fraud and cyber crime is vastly reduced as the inclusion of more nodes means that the system is harder to ‘take down’.
Promotes Trust and Transparency
Currently, a central entity in a financial institution keeps records of our transactions, represented as a ledger.
What if two 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 previously without a central entity.
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 nearly 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 is reduced with blockchain. This also helps to reduce costs by eliminating these middlemen. Efficiency is also increased as transactions are conducted between peers.
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.
Kyle Young
Working as a cryptocurrency research analyst at www.vhcex.com which offers extensive cryptocurrency trading pairs with unparalleled customer support. Passionate about technology. Video games provide the break from my daily life routine.
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