Blockchain is a crypto base mainly used by cryptocurrencies to facilitate or verify transactions. Blockchain is a central authority for virtual currencies that records and holds the transactions data and provides excellent security. Comparing blockchain security with traditional payment systems, Blockchain, without a doubt, will hold the first rank in security rating. There are chances of hacking and cyber-attacks on our ordinary banking transactions because the information flows from multiple channels. Blockchain has the direct flow of information from the user to the recipient, thus, providing more security. Join the BitiCodes community to start your trading journey. 

There is not only one feature of the Blockchain that makes it superior to traditional technology. Blockchain also provides speedy transactions. Thus, it settles the overseas transaction in minutes. Blockchain uses nodes to store essential information. Each blockchain node holds the same information and stores the information in an open public ledger. Where anyone using some specific tools can view transactions but does not have the power to change them without the permission of the wallet holder; in traditional technology, anyone can change the transactions and improper use of someone’s personal information.

Features of Blockchain

Immutable

 working through a collection of nodes and being immutable means permanency and an unalterable network. Blockchain stores information in the form of small nodes, and each node contains information to be recorded on the Blockchain, and we can say that node has a copy of the digital ledger. To add or validate a transaction on the Blockchain after the majority of nodes, the transaction is added to the blockchain network. Without the approval of about 51% of nodes, the transaction is not added to the network or assumed as a fake transaction. 

After the transaction is added to the network, the transaction is irreversible, and the validated records can’t be changed. It means that the users on the same web can’t edit, change or delete transactions without the owner’s permission.

Distributed

If the information stored on the Blockchain contains information about different partners, then all the network participants have a copy of transactions. Thus it helps bring transparency. Blockchain is a public ledger and helps provide complete and transparent information to the network participants. Blockchain is connected through a network of computers to ensure a better outcome. Distributed ledger technology is a critical feature of Blockchain and helps maintain the different ledgers in a single network for multiple partners.

  • It becomes easy to edit the list using distributed ledger technology, and it is clear to see what is happening in the companies’ ledger. In addition, the blockchain ledger is way faster than the traditional ledger system, and DLT technology also helps avoid double entry for a single entry.
  • Every single node on the blockchain network should maintain the same ledger and validation of participants.
  • If a wrong entry is made using DLT, the mistake can be solved quickly, and updated information can be done quickly using Blockchain. It is possible because Blockchain is an independent base and does not include any intermediaries to verify transactions.

Decentralized

Blockchain is a decentralized base and does not include any central government financial authority to validate its transactions. Blockchain is responsible for accurate decision-making, where the node groups help maintain the network. The decentralized property of Blockchain has many advantages like

  • Blockchain does not depend on human calculation as it is fully fault-tolerant and organized. Humans can make errors, but computers and Blockchains can’t make errors. 
  • The blockchain system can’t fail because hackers need an expensive setup to hack the Blockchain. It is all possible because Blockchain is an independent base. Thus Blockchain is free from any third-party involvement. It is a good sign for security, and information flows directly from companies to companies’ networks if two companies are using Blockchain for the safety of their transactions. 

Secure

Blockchain is secure from the traditional recording, holding, and transferring of payments. Records on Blockchain are individually encrypted. Encryption adds another level of security in blockchain transactions to the process on the blockchain network. Since there is an absence of any central authority that controls the Blockchain, it does not mean that anyone using some specific tools can enter the Blockchain and edit or delete the transaction recorded on the Blockchain. Every small or giant piece of information is cryptographically hashed, and every set of information has a unique identity on the blockchain network.

Conclusion

It is clear that Blockchain is a better, secure, reliable, independent, and immutable network and comparatively a better option than all the other traditional techniques. It can be used for small-scale as well as large-scale businesses. Do study the use of Blockchain before using it practically.