What Are The 4 Features Of A Blockchain?
Blockchain isn’t a new topic on the internet anymore. You can find this word in some other place; it can be on social media, online websites, news articles, or anything else. And I am sure even you would be clear about the basics of blockchain technology; if not, you can know about it through one of our articles.
Coming back to the topic, what makes blockchain so unique and famous in the digital world? And the answer is its abilities and fantastic features. Today we will discuss what are the 4 features of a blockchain that are bringing a revolution in the database network.
What is Blockchain?
Blockchain is a particular system of storing information through such a methodology that makes it hard or even impossible to tamper and hack or cheat the system.
A Blockchain is a digital ledger holding transactions that are replicated and distributed across the entire network of computer systems on the blockchain.
Each block in the chain contains a certain number of transactions. Whenever a new transaction is made on the blockchain, a transaction record is added to every participant’s ledger.
The decentralized database, which multiple participants manage, is distributed ledger Technology (DLT). And blockchain is an excellent example of DLT in which transactions are stored with an unchangeable cryptography sign Called a hash
4 features of a blockchain
Blockchains are now becoming part of various industries because of the versatility and security it provides. The irresistible features of blockchain technology are making it more prevalent and efficient for multiple industries and businesses to adapt to them. The primary vital features of blockchains include:-
Whenever key features of blockchains have been listed, the word “immutability” tops it. And no doubt it deserves to. Immutability is a crucial feature of blockchain which means that no one can change, temper or rewrite the data once it is shared with the ledger. Immutability helps to keep the information permanent and unhampered in the network.
Now the question arrives: how does it work?
Blockchain technology works differently from a typical banking system. As we very well know that blockchains don’t have any censorship or, you can say, any control authority. Hence, it is entirely controlled by the collections of nodes.
Nodes are the operators or the stakeholders of a blockchain network, and each node has a copy of the digital ledger. To add any transaction or data, it needs validation from the nodes, and transactions are added in the block only if it gets confirmation from the majority of nodes. The use of this technique encourages transparency, helps to keep the data permanent, and fights corruption.
How does blockchain help in fighting corruption?
As technology is developing and going digital, cybercrime has been increasing timeously. Businesses spend large amounts on securing their data from Cyber crimes and hackers. But what they forget is to look over the internal cybersecurity risks.
The term internal cybersecurity risks are dedicated to corrupt employees and authorities who can temper the database and create loopholes for the hacker.
When such situations occur, blockchain technology comes to the rescue. As blockchains have immutability, no one can temper, delete, or rewrite anything once recorded. They have various types of blockchains to choose from for transparency of data according to one’s choice.
- Decentralized system
When we use the term decentralized, it means that no government authority or single person has ownership, control, or power. And blockchain is a decentralized network that isn’t looked after by any government or individual administration. Blockchains are entirely in the hands of the network’s nodes, and they maintain it.
In simple words, we can say that blockchains give access to everyone, as no government authority controls and decides the operation. The users get straightforward access to the power to manipulate and store important documents, records, sets, cryptocurrency, etc. Without any permission. Besides this, blockchain provides every user with a private key for security purposes.
What makes this feature unique?
As we know what decentralized networks mean, now let’s talk about the significant points which make this feature valuable and unique.
- Fewer failure chances
Blockchains are well organized and automated, with the least human involvement in their process or work. Therefore, there are very few new or no failure chances in the operations
- Complete user’s control:-
A decentralized network provides free space to communicate and use it so that no individual or company can control or use others’ data for self-gain like other social media networks. The users have their own and only have the rights and control over their assets.
- Fewer chances of getting hacked
Decentralized networks don’t have any single choke point to make them weak or hack them for personal gain. And this takes the possibility of getting hacked to zero. And makes the network more secure and adaptable.
Blockchains are very well known for their transparency as it is decentralized; nothing is hidden or secretive in the blockchain. Whenever any changes are made, they are visible to all and can be verified.
- Better security
As mentioned, a blockchain is a chain of digital blocks holding records describing transactions. Each block is connected to its previous and subsequent blocks. This makes it complex enough for the hacker to tamper with a single form as he has to change the block containing the document along with the other linked blocks in the chain.
Besides this feature, Blockchain has other inherent characteristics that provide additional security to the transaction. Like the records on a Blockchain are secured through cryptography techniques. And each network participant has their private keys assigned to record particular transactions to carry out, and they function as their digital signatures.
So if a record is tampered with, the signature will show invalid, and the peer network will get information immediately that some changes have been made. And we know that early notification is necessary to prevent further damage.
Blockchains are decentralized and distributed across peer-to-peer networks, continuously updated and synced. As they are not stored in a central location, blockchains do not have a single point of failure and cannot be modified through a single computer.
- Swift settlement
Banking systems are based on traditional databases, And we can see that they take longer to process certain transactions and finish their settlement. Furthermore, these services aren’t that secure and can be corrupted (transaction) quickly due to loopholes in their systems.
Meanwhile, the availability of highly secure and encrypted technology makes Blockchain faster and lets users create secure transactions. Besides this, the Blockchain sets people free from the stress of making international transactions too.
People can make money transactions with their families or loved ones from any foreign country in less time and in a more secure way.
The settlements are also faster due to the use of innovative contract systems.
Smart contracts are digital contracts stored on a Blockchain loaded with certain conditions that get automatically executed when those terms and conditions are met. Overall we can say that blockchains can bring revolution in database methods and help people to optimize their time in a better way.
Blockchain isn’t a wave of topics that will stay for a few days and disappear. Blockchains are gradually strengthening their roots in the digital World. As more people are getting aware of blockchain, their use of it has also increased in the market. Businesses are especially making the proper use of blockchains.
After looking over the key features or 4 features of a blockchain, there is no doubt why it’s getting famous and close to people. We can conclude that blockchain is a budget-friendly and worth using network no matter what kind of industry we belong to.