You might be surprised about the rising popularity of Blockchain technology. Are you curious to know the reason for the growing popularity of Blockchain technology? Blockchain has been in the limelight in the business for quite some time. However, most of us are unaware of what a blockchain is, how it operates, and what characteristics distinguish it.
To completely comprehend the fundamental characteristics and have in-depth knowledge of blockchain security features, we must first comprehend the notion of blockchain technology. In this essay, we will discuss the major characteristics of blockchain that have made it so popular in recent years. Furthermore, in this essay, we will discuss the main blockchain security aspects.
Table of Content
What is Blockchain Technology?
Blockchain technology is a complex database technique that enables the transparent sharing of information within a corporate network. Data is stored in blocks that are linked together in a chain in a blockchain database. Because you cannot delete or amend the chain without network consensus, the data is chronologically consistent.
As a result, blockchain technology may be used to establish an immutable ledger for recording orders, payments, accounts, and other transactions. The system includes measures for preventing unauthorized transaction submissions and ensuring consistency in the common view of these transactions.
Uses of Blockchain Technology
- It is used in detecting any Fraud.
- It is used for the security of the Network.
- To make Smart Contracts Blockchain Technology is used.
- Blockchain is used in financial services also.
- It is also used to play video games.
- In the healthcare industry, Blockchain technology plays an important role.
Characteristics of Blockchain Technology? (H2)
To make Blockchain Super know the Characteristics of Blockchain technology. Following are some of the important features:-
It is the most important aspect since it assures that no data is damaged. Every node in the system has a copy of the ledger, which is how it works. So, in order to change any data, every node must agree unanimously. As a result, blockchain is both safe and transparent.
Blockchain is decentralized, which means that it is controlled by no authority or government, a collection of people, or a single individual. Rather, a set of nodes manages the entire transaction.
Single source of truth
There is only one source of truth in a blockchain, and that is the distributed ledger. So,to find out who owns something or to investigate a specific transaction, you simply need to go to one spot.
Transparency or provenance: With blockchain, any transaction, physical or intangible, can be tracked from start to finish.
In order for a transaction to be acknowledged and recorded on the blockchain, all participants or nodes must agree to the same set of rules.
Although every transaction is visible and available to the public, the actual people are kept anonymous through the addresses.
For example, if someone transfers money, the receiver will know that the sender is associated with a Bitcoin address, but they will not know the exact address. One of the reasons for this is to protect one’s privacy.
How does Blockchain Technology Work?
Understanding the process of Blockchain working tells you that Blockchain is not a single incarnation it’s an addition of three technologies. The Name of technologies are as follows:-
Cryptographic keys are a mix of keys. They are divided into two types: private keys and public keys. A digital signature is created using both keys. The digital signature is a digital identity that makes each transaction distinct and safe.
A Peer to Peer Network
It allows you to do transactions between only two parties, the sender & the receiver, so it removes the requirement of third party authorisation as they can easily Authorize the transaction.
A Digital leader
All of these transactions are stored in the Digital Ledger. In layman’s terms, the digital ledger is similar to a spreadsheet in that it contains every node in a network and records every purchase that node has ever made. The digital signature prevents tampering with the information in the digital ledger and assures its security. The most remarkable aspect of this ledger is that, while anybody may read the data, no one can modify it.
The combination of these three technologies makes a strong Blockchain Technology and these three technologies work separately to provide a combined result.