For the past few years, IT industry has been filled with the news about Blockchain and related technologies. In simple words, Blockchain is a distributed ledger, a ledger distributed over the internet, which can be used to store transaction details. It is an immutable ledger that facilitates the process of recording transactions and tracking assets in a network.
The applications of Blockchain are expanding beyond all the initially defined possibilities. Some of them are Smart Contracts, Crypto Currency, Health Care applications, Governance solutions, IoT etc. Maybe you are familiar with Blockchain, yet knowing its benefits over traditional technologies will give a better understanding of it.
1. Data Immutability
Security of data in Blockchain network is more guaranteed than any other existing technologies. Since changing any ‘Block’ in the chain need an entire restructuring of the whole previous blocks and which in turn demands a majority support in the network, is highly impossible.
2. Transparency
Data is stored on the public network and viewable to all stakeholders. However, we can also develop Blockchain with access restrictions.
3. Low Cost
Blockchain transactions eliminate the scope of intermediaries like banks, Legal aid organizations etc. Rather the transactions are conducted persons to person, obviously, the cost associated with any transaction via Blockchain is lower.
4. Auditability
Since the data is consecutively stored and publically held, every transaction leaves an audit trail. So we can track a digital asset from the beginning to end of its life. Features like this can make the future of economy more accountable.
5. Automation
The intermediaries are replaced by ‘Minors’, ‘Smart Contracts’ and ‘Computer Programs’ so the transactions and information management process are automated.
6. Higher Accuracy
Since the transactions are automated the scope of error is highly impossible.
7. Impossible Loss of Data
Unlike centralized, the decentralized approach reduces the possibility of data loss. Most of the data will be stored in different nodes and even some nodes gone compromised it will not affect the whole network.
8. Trustworthy System
Blockchain data structure permits the users to authenticate the transactions easily without a third-party aid. So the system will remain trusted by end users. Moreover, auditability, transparency and Data immutability enhance the trustworthiness of the system.
9. Security
All the important information is encrypted and the sender and receiver alone can access the data. Moreover as mentioned earlier a block manipulation is also highly improbable.
10. Easy Access
No intermediaries and highly promoted by open source platforms, unlike former game-changing technologies the Blockchain is more accessible to all kind of users.
11. Real-time Settlement
Blockchain offers an enhanced real-time settlement option to present financial system. It is mooted as the next platform for RTGS in the banking system.
12. No Central Authority
Since it is a decentralized peer to peer level system, there is no central authority to control. New blocks are added with a network consensus.