January 28, 2021
Advantages of blockchain technology

Advantages of blockchain technology

By on May 14, 2019 0 770 Views

In the last years everyone has known Bitcoin as a cryptocurency that is making a revolution in the financial field with the number of users who have trusted the new money and who have started to invade in the bitcoin that has exceeded

the $ 12000, in parallel we started hearing the Blockchain technology which presents itself as a technology of storage and transmission of information without control organ.

In this article we will start the advantages of Blockchain technology, so which are the advantages of Blockchain.

Advantages of blockchain technology.

Every transaction is always legal. Everyone has the right to share and store information with others, provided they have the key to open their private wallet. In this way, Blockchain is able to protect the data owner and prevent fraudulent behaviors;

The information cannot be altered and can only be added with the consent of all nodes (members) in the system. Even if part of the blockchain system collapses, computers and other nodes will continue to work to safe guard the information;

Secure data transfer: Blockchain log data is encrypted and associated with the date of the initialization to prevent overwriting of information. The information will be updated for all copies worldwide in a few seconds;

Transactions are not mediated: Copies of this digital ledger file are only shared with the miners who contributed to the system. Anyone can participate in the system, by downloading the Bitcoin software;

Unique security: Blockchain is a distributed ledger – asset database that is hosted and shared worldwide. This information is related to finance and law and may exist in physical or digital form. No one can make change to this information;

Transaction cannot be faked since everything has been determined to be unique. Thus, blockchain technology is a breakthrough against internet fraud, as well as financial transactions through third parties;

Cost savings: By using blockchain, banks can create new infrastructure to ensure the security of their ledger, there is no need to worry about security, thus, reduce the costs associated with data recording;

Faster transactions: Blockchain provides a system and tools to redesign and improve management reporting, control and acceleration of financial procedures. Blockchain can reduce transaction time to seconds and are processed 24/7;

Secure data through encryption and decryption: It is not necessary for participants to have mutual trust. Resilience, reliability and longevity, due to decentralization allow blockchain to have no central point and can withstand devastating attacks;

High quality, complete, consistent, timely, accurate and widely available data: Decentralized blockchain technology enables the aggregation and analysis of vast amounts of data between organizations as well as validating and verifying the accuracy of the data points;

Automatically identify system vulnerabilities in the supply chain, finance and business processes: The records on a blockchain database cannot be altered by third parties, thereby eliminating counterparty risks;

Provides optimization, reduce costs and avoid infrastructure investment costs: By eliminating third-party intermediaries and input costs for asset exchange, blockchain smart contracts can provide automated and predictable performance, dramatically reducing direct transaction fees. , internal and external, maintenance and operating costs;

Transparency and immutability: Public blockchains are publicized by simple eco-system components that facilitate transactions added to only one public ledger, reducing the confusion caused by the complications of multiple ledger system.

In general, the core value of a blockchain is to allow a database to be shared directly without the central administrator. Blockchain works based on a consensus mechanism to ensure synchronous nodes, transactions can be verified and processed independently. In which, the third party is replaced by a distributed database, which is secured by smart encryption. Gideon Greenspan (Sarah Kocianski, 2017) concludes, “Like what has happened before, they use the increasing capacity of computer systems to provide a new way to replace human with automation and once that has been written and fixed, the cost of information technology tends to be much cheaper.”

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