Why is Blockchain Important and Why Does it Matters

Why is Blockchain Important and Why Does it Matters

Blockchain technology act as a database which is required to store information in a digital format. It is a digital ledger system which is required to share documents within the computer system.

This technology is also used for maintaining a secure and decentralized process for recording transactions and information without the interference of third parties. Blockchain is a secure system of storing data used by companies.

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Blockchain working Mechanism This technology collects data into blocks and then links them together such that each block reaches its maximum capacity. The linear chain of information and data formed after the linkage of blocks is called Blockchain. The data stored in these chains of blocks is irreversible and permanently recorded and stored in this technology. This mechanism plays a vital role in cryptocurrency transactions and exchanges. Data that is stored and recorded in the database system can't be altered or deleted. Blockchain technology has the same mechanisms in business structures.

Take the example of the insurance company which records client-sensitive data and transactions and other third-party sensitive pieces of information. All the information is stored on the network of the company and is backed up on the cloud. In case of hacking and leakage of sensitive information, Blockchain technology provides security to the company’s data system. This company’s data will be recovered and secured.

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Transparency Blockchain provides all the security to a company’s data system and works in a transparent manner. Data stored and recorded in blockchain technology is traceable in real time. The most relevant example is when hackers hack the exchange wallets of cryptocurrency. Bitcoin trail is traceable and easily recoverable.

Security Blockchain technology is designed for the purpose of providing digital security. Blockchain consists of a block which is containing a hash that is an individual cryptographic print. Once blocks are linked in the blockchain system then it is impossible to alter any information on the specific block.

The only process of altering the node on the chain is changing the node’s hash and that will cause misalignment with other nodes on the chain. The other nodes will recognize this practice as it will be considered as the consensus protocol. The block alignment can be the case in a case when the hacker is successful in changing half of the block alignment on the chain which will be time-consuming and expensive.

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Benefits of Using Blockchain · Authentication of software Interactions Organizations and companies have used blockchain hashing to verify updates and downloads from developers. This hashing also helps in mitigating the supply chain management system.

· Data Integrity The data stored on the blockchain system can’t be altered. This function is significant to cross-border data distribution systems. In the case of medical records and personal information data stored in one country can be used in other countries.

Risks

· High Cost Blockchain requires a high-cost method which is costly and maintaining the networks is a challenging task.

· Hacker activity Hackers developed an advanced way of hacking because of decentralized blockchain technology system

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