Blockchain is simply defined as the data structure that keeps a record of each transaction and communication, that is digitally signed to ensure that it’s security, decentralization, and transparency from the possibility of any interruption, corruption, and/or tampering of data, are kept intact. The ledger itself and all transactions recorded in it is of high integrity. Any information that is stored in the blockchain is impossible to remove.
Blockchain uses encryption and digital signature to secure all data stored in it, which makes it tamper-proof and can never be altered. The technology of blockchain enables all participants to arrive at an agreement, also known as consensus. Every single data that the blockchain holds is digitally recorded and contains a history that is common to all participants within the network. This eliminates any possibility of fraud or replication of transactions without a need for a third-party.
Doing transactions and communications using the blockchain technology offers a lot of benefits. For example, your usual method of payment to send money to someone who is in a different location is through PayPal or wire transfer. These options involve third parties to process your transaction. You are not just paying for fees, you are also prone from hackers who might disrupt the network and take away your money. If you use a blockchain for sending money, everything becomes easier and secure. You don’t have to pay for any fees as you are processing the money transfer yourself, which therefore means that you don’t need a third party to process it for you. The database of blockchain is decentralized, which means that there is no possibility of any disruption from hackers.
Another benefit of blockchain’s decentralization is that it makes it an ideal register and clearing solution for affiliations and joint ventures as it makes an equal 50/50 footing without a need for a third party moderator or manager. Verifying and settling of transactions through the use of computers eradicates the need for clearing houses, and/or other settlement agents. This therefore, greatly lessens the cost while accelerating the speed of the verification, settlement, and recording of the transactions.
Blockchain works well indeed in keeping the integrity of transactions and communications secure. The whole technology system frees the participants from fraudulent activities, interruption, and corruption of data. It is a proven and tested method of safekeeping of data and information in the digital realm. That is, of course, on the premise that the users take necessary precautions and measures to ensure that blockchain serves its purpose. Blockchain is the new face of technology that has already gained popularity and credibility due to its efficiency since it was first used by the application of cryptocurrencies.