Blockchain is the technology on which cryptocurrencies work, but it is much more than that. We explain its 6 main features.
What is the blockchain?
Blockchain is a huge database, in which all kinds of transactions are stored in blocks. These blocks contain information about the transactions that have taken place, like payments with a digital currency or the exchange of important data, such as contracts or property deeds. A blockchain consists of blocks of information that have been digitally ’signed‘ by both parties, without the intervention of a third party, such as a bank. That’s why it’s called a decentralised network.
1. Increased Capacity
Due to the decentralised design, many computers work together and share their power. As a result, the capacity of a decentralised network is much bigger compared to a centralised network. As a result, all transactions are processed much faster.
2. Secure and stable
Blockchain technology is considered more secure and stable because there is no single point of failure. Blockchain operates on a well-distributed network of nodes, so data circulates through multiple nodes rather than just one, which ensures that even if one node is hacked or fails in some way, the integrity of the original data is not compromised.
3. Immutability
One of the most important values of blockchain is the creation of immutable ledgers. All transactions are recorded one by one and are traceable.
4. Faster settlement
Because traditional banking systems require a lot of settlement time, they are very slow. With decentralised design if blockchain, the transaction speed is very high. So even a transaction to the other side of the world is done in no time.
5. No supervision
The decentralised nature of blockchain gives you the power to store your assets in a network without the supervision and control of a single person or entity. This gives the owner direct control over their account through a key associated with the account, allowing them to transfer their assets to whomever they wish.
6. No manipulation
Every node in the network has a copy of the digital ledger and checks every new transaction. This makes everything transparent and corruption-proof.
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