What is Blockchain Technology? A Simple Guide For Beginners!
05 January 2021
Blockchain is a distributed ledger technology (DLT) that records the transaction details of the system participants in its public database. The data entered are immutable ie., they cannot be altered. It’s because any data (or) block when entered on the blockchain holds a print of the previous entry. Since every block is connected with every previous block, any unauthorized attempts made to alter the data (which is impossible) will have to alter all the connected data, thus making it practically impossible.
Since each system is connected to each other by a decentralized peer-to-peer network, every user gets to maintain a copy of the ledger record. So, basically, this provides no room for single-nodal failure. Even if one node gets affected, the data remains up and running with other systems.
It is this aspect that differentiates itself from centralized systems, where the entire database is stored at one point. Thus, centralized systems are prone to hacking and blockchain-based decentralized systems are highly secure.
Properties and benefits of blockchain technology:
Blockchain is programmable with smart contracts (pre-coded agreements that automate functions based on conditions set).
The presence of smart contracts, absence of third-parties, and single-nodal failure make the system highly secure.
The identity of the user will not be revealed. It is either anonymous or pseudonymous.
All transactions are time-stamped on the block.
The blocks (or) transactions uploaded on the ledger cannot be edited at any cost. This is why blockchain technology is safer from hacking.