What Is Blockchain? | 5 Major Advantages Of Blockchain

What is a Blockchain?

Blockchain is a distribution of databases that shares the nodes of the computer network. It stores all the information electronically in digital format. It initially came into the limelight after its crucial role in cryptocurrencies, especially Bitcoin. After that, most people are now using it to maintain a secure record of their transactions. It guarantees the security and fidelity of records of data that generates trust without the involvement of a third party.

The key difference between a typical database and a blockchain is the way both are structured. It collects all the information in groups known as blocks. These blocks hold sets of information. Get Blockchain Online Training and learn more about the opportunities of that blockchain offers.

Advantages of Blockchain:

After the successful contribution of blockchain in cryptocurrencies, many industries have now started to use it. Find here some major advantages of blockchain: –

Decentralize:

It is considered to be the main advantage of Blockchain technology. No one in the center position enables trust in it. Moreover, people lack trust because they are unknown to each other. Blockchain has no single entity that is exclusively in charge of sharing the data in its ecosystem. This proves the value of blockchain technology. With its decentralized nature, it is however able to solve the dilemma of data sharing.

Security and Privacy:

The security provided by blockchain-enabled systems is another advantage of this emerging technology. With end-to-end encryption, it creates an unalterable record of transactions. It shuts out the chances of fraud and unauthorized activities. The data in a blockchain is stored across the computer networks which makes it nearly impossible to hack. Unlike any other conventional computer systems where they use the servers to store the data together. Moreover, it can also address concerns of privacy better than the systems of traditional computers. It simply anonymizes the data and asks for permissions to limit access.

Speed:

By replacing the remaining manual process in transactions and eliminating intermediaries, it can handle the transactions faster than the conventional methods. In some, cases it can handle transactions in less than a second. The speed of transactions in this technology also depends upon multiple factors. Such as the size of the blocks of data and traffic of the network. In one of its prominent applications, we can see how Walmart is using this technology to track the source of sliced mangoes in seconds. The same process was taking seven days before this technology.

Individual Control of Data:

As per the experts, it enables an unprecedented number of individuals who control their digital data. In today’s world, data is a very important and valuable commodity. This technology protects the stored data and allows the owner to control their data. It is up to the individuals and individual organizations who can decide with whom they want to share the data and for how long. It can be done with limits that have been enforced by the smart contracts enabled by it.

Visibility and Traceability:

Walmart is not using it just for the speed but it is more than that. It also helps to trace the origin of those mangoes and other products. This technology is helpful to the companies like Walmart to respond to queries, confirms the history of merchandise, and better manage their inventory. It helps to trace contaminated products and remove them leaving the remaining products for sale. Learn more about its advantages by enrolling yourself in Blockchain Training in Delhi.

Conclusion:

This technology is not only about bitcoin as most people understand, it is much more than that. Every day people are finding new ways to use it to get benefits from it. From individual business owners to MNCs, every business is now jumping into its lap to get more benefits.