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Why Use A Blockchain?

BitForex Editor
Sep 23, 2020

Adaptation of the blockchain is fast reaching every end of the world. Different sectors have seen its numerous advantages to its operations from cargo supply chains to food production companies.

FedEx has employed the blockchain in order to monitor cargoes moving overseas or within specific locations. Burger King, under the Waves platform, initiated the WhopperCoin which customers can exchange for goods and services. Likewise, there is an existing partnership between IBM and giant companies like Nestle and Walmart which aids them in receiving customer feedback which enables them to offer better services in the long run. The list of companies buying into blockchains is endless.

The blockchain is a powerful tool for business and can equally do justice in the absolute finance systems. It is also beneficial for personal transactions. What attributes make the blockchain unique? Why use a blockchain? Let's see the following contents.

Decentralization

Many setups nowadays have their database as a centralized system. This keeps every information concealed there at risk. Hackers are doing the most in recent times, by breaking into various systems and using them as leverage for cybercrime.  The social media company, Twitter, was a victim recently.

The decentralization of the blockchain means there is no central or apex authority. Nodes are created by a collection of the computers of users on a blockchain making each person's device a building block on the network.

Generally, humans are used to subserviency under a common authority, an organization-like setting. Many will say decentralization brings disorder, chasing everything that should be knit together at one point to edges. However, the blockchain allows people to have personal goals and objectives. The recent peer-to-peer network, although participatory, gives independence to its members. So no strings, no ties.

Transparency And Privacy

No doubt, the contents of the blockchain is visible to everyone. But in a sinister fashion, a copy of the blockchain is stored on every computer on it. Each copy is a look-alike of the other and gets updated with every additional block to the system. The fact that information is shared in this manner makes the blockchain impenetrable, and everyone is sure that their details are secure.

To have a hint of the extent to which the blockchain is trusted, it is now used in the healthcare sector. Patients can have medical files on telehealth platforms, and these records can only be shared at the filer's will. Otherwise, such files cannot be tampered with.

Data Security

Blocks that make up the blockchain are connected to each other. With every block added to the chain, the security can get stronger.

A hacker who wants to hijack a transaction will have to manipulate the block which the computer in use represents. The block in question automatically affects the adjoined blocks which have to be addressed to make a smooth "operation". Every block is encoded with its unique hash. Imagine the hours put on the line and manpower involved in settling the dust.  No matter the level of cyber intelligence, it will meet intense difficulties.

In fact, consensus models are used to test computers wanting to join the blockchain. The testing process can be likened to a verification where a computer is tasked to solve a complex mathematical program to qualify.

Attempts to break into the blockchain are not barred. However, the workload involved is enormous like gaining at least a 51% hold on the blockchain. The success probability is not encouraging, either.

Efficient And Cheap Transactions

You can cut down on transaction fees. These monsters are the reasons why many people hold back on internet banking. With peer-to-peer networks in the blockchain, transfers are possible without unnecessary verifications that feed on your account. Sending money, cryptocurrencies comes at a minimal, friendly fee.

Saves Time

Smart contracts are the transaction deals of the blockchain. In an automated style, smart contracts carry out instructions fed into them and bring transactions to completion almost instantly. The absence of middlemen is a huge supporting factor in this regard.

Every node on the blockchain is a server so no straying far distances for information. A centralized system has its specific server whereas nodes nearby, also on the blockchain, can peruse through and at a faster pace. The likelihood of a swifter response on the blockchain is way higher than on regular networks. An example of this speed is noticeable in blockchain-based search engines like Nebulas, Presearch, Research, and BitClave.

For The Records

The blockchain is pretty fast on its own. Without having to consult a central server which is probably miles away, the blockchain makes use of the nodes. The nearest node is most likely at a next-door neighbor's or a few blocks away. Additional blocks to the chain will also cause the network to get updated in real-time. Nevertheless, you may want to be in the know of your present and past actions. The blockchain setup keeps track of your activities and gives you a lowdown on demand.

Decentralization shares all data out to various nodes, shutting out a centralized system. Apex systems are highly prone to attacks. A successful attempt to compromise a central server is disastrous. The blockchain gives you confidence.

No process on the blockchain is subject to mismanagement. The secure system keeps you up-to-date as proceedings go on. Above all, your resources—time and money—are valued. Technology is advancing every day, and we should endeavor to match up to its pace.

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