Ever wonder if there is an easy way to complete transactions without dealing with online wallets, banks, and third-party applications? Well, its possible thanks to Blockchain. If you are curious to know more about the functioning of Blockchain technology, read on to know further to have an overall better understanding. Visit at: https://cryptodezire.com
Benefits of Blockchain- Points To Note
Mostly, we get to see the unwanted occurrences of technical issues at banks, let alone the chances of hacking of accounts and identity thefts. Not only this, many people go over their daily transfer limits, and sometimes there are extra fees for moving money.
Having the aim to solve these problems and unwanted scenarios, cryptocurrencies were invented. Cryptocurrencies are completely digital form of tradeable asset that runs on the Blockchain technology. Further, Bitcoin is the first real-life example of Blockchain where the records are not kept by a single authority. Instead, many different people maintain the records.
Suppose anyone wants to transfer a few Bitcoins from my wallet and assume that I have zero Bitcoins. Will I be able to convince all the nodes? What are these nodes? In simple terms, nodes are known as mining farms.
One more significant Benefit of Blockchain Technology is that they are Immutable, which means it cannot be cracked or hacked. If someone tries to hack the computer, they will not get anything because they have to hack all the Computes connected to the nodes across the world, which has so much Computational Power, and that is beyond Impossible.
Important Elements of Blockchain Technology
- Peer-to-peer network
Blockchain technology has to have a peer-to-peer network which means any transactions that we do via Bitcoin by using Blockchain technology have to be One-to-One Transactions. Further, people now trade Bitcoin on Bitcoin Era.
Cryptography is a process of encrypting and decrypting information, so with the help of Cryptography, we can prevent unauthorized access. Both the sender and the receiver should know how to decrypt the message so that they can both understand it. Here transaction will be in Encrypted form, and no one will be able to hack that or use it maliciously.
- Market Adoption
Everyone should have faith in the system that, yes, we should go from a centralized trust to a decentralized trust.
Features of Blockchain
What we understand with the word immutable is the thing that cannot be changed or altered. When talking about the Blockchain system, it isimmutable. In simple words, Blockchain cannot be altered or irreversible. We can only make changes to the digital ledger if most of the nodes are ready to do so.
A ledger is any file or document that relates to a monetary unit, for example, Property documents, Financial Banking documents. Some nodes have certain functionalities to check the validity of transactions before actually adding them into the picture. The popular Blockchain applications like Bitcoin and Ether, the Immutability achieved by ‘Proof of Work’ Mechanism.
- Distributed Ledger
Distributed Ledger is a ledger distributed on all the nodes, so there is no Centralized System. Further, Distributed Ledger is a Database held and updated independently by each participant in the extensive network, so the data is hand independently.
Verifiers for transactions in the Digital Ledger that aren’t chosen to share by all the other nodes are on every node.
In Blockchain Technology, there is no Centralized Authority to operate the transaction from sender to receiver, like centralized authority Banks. All the transactions are Decentralized and encrypted in such a format that none can hack it and crack the encrypted message.
Suppose someone wants to hack a particular bank transaction of a person. All they need to do is hack the bank server, which is possible with hacking skills, but in a Decentralized System where Blockchain Technology has been used, there is no single Hacking system.
Further, Blockchain connects all the nodes. If someone tries to hack the computer, they will not get anything because they have to hack all the Computes connected to the nodes across the world, which has so much Computational Power, and that is beyond Impossible.