Do you know what Blockchain Technology is and how it works?
If you have heard about cryptocurrency, you probably must have heard of Blockchain as well.
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What Is Blockchain Technology
First of all, it is worth knowing that Blockchain is the main technology that leverage or enables the operation of crypto-currencies including the well-known BTC, Ethereum, Litecoin and the likes.
Blockchain popularly known as a Distributed Ledger Technology (DLT) can simply be defined as a digital ledger of financial informations across a network of computers in a safe and secured system.
Blockchain is made up of two words; Block and Chain. This implies that chains of informations are stored in a block or blocks.
A few desirable characteristics of blockchain technology includes decentralization, autonomy, transparency, immutability, verification, auditability, anonymity and integrity maintenance.
Types Of Blockchain Technology
Generally, there are 4 known types of Blockchain namely; Public Blockchain, Private Blockchain, Hybrid and Consortium Blockchain.
1. Public Blockchain
The public Blockchain as the name implies, is a type of Blockchain which offers a visible access and permission-less view of decentralization to the public.
This means that informations on transaction chains can be viewed by other Blockchain or network users openly and without necessitating a permission.
A good example of this type of Blockchain is the Bitcoin chain.
2. Private Blockchain
Having looked at the Public Blockchain, the private Blockchain can be seen as the opposite of the public Blockchain.
The Private Blockchain is a type of Blockchain which is controlled by an authority.
Visibility of informations across this type of Blockchain can be accessible only by permission.
This means that Private Blockchains are partially decentralized as the informations on chains are restricted to the Public and controlled by a central/single organization.
This kind of Blockchains are usually used by Business to Business (B2B) Crypto-currencies exchange networks.
3. Hybrid Blockchain
The Hybrid Blockchain is a combination or mixture of both the public and private Blockchain.
In this type of Blockchain, a part or certain of informations are privately controlled by an organization while the other is publicly viewable like in the public Blockchain.
4. Consortium Blockchain
The Consortium Blockchain is a type of Blockchain which advances that of a private Blockchain in the area of centralization.
Consortium Blockchains are controlled by multiple entities or a group of organizations with more decentralization benefits.
Nevertheless, it can also have antitrust issues with regards to other organizations involved.
The Purpose Of Blockchain
The main purpose of the Blockchain technology is to enable and ensure a secured distribution of digital and financial ledgers without alterations and in a safe storage.
What Are The Benefits Of Blockchain Technology
The benefits or importance of Blockchain can easily be pointed out from the purpose of Blockchain technology.
But let’s outline a few of the major benefits of Blockchain technology especially to business persons who utilize the system.
• Blockchain Technology enhances security and privacy of data.
The Blockchain technology has a safe and secured network across computers which ensures the security of informations and can change the way they are viewed publicly to protect the privacy of users.
• Blockchain Technology ensure a level of trust between business persons.
A lot of people who don’t know each other physically, find it comfortable to transact using the Blockchain technology and it’s a benefit!
• Blockchain Technology offers reduced cost of transactions.
Blockchain is efficient in processing financial transactions.
It also offers businesses a low or reduced fee cost when utilizing the system in making transactions.
• Blockchain Technology allows users to have control over their data.
As much as Blockchain aims to protect the data of its users, it also allows individuals to have control over their individual data.
That means you can actually edit your personal informations on the system and freely.
• Blockchain Technology ensures the immutability of transactional data.
This means that every transactions through the system once recorded cannot be edited or deleted from the system.
At that, Blockchain technology has long term benefits in tracking historical transactions.
• Blockchain also has a good transactional speed.
Depending on the network traffic and volume of transactions, Blockchain has a remarkable speed rate where processing transactions is concern.
In some cases, transactions are processed within seconds but in other cases, it may take longer.
Considering other factors that may play in, Blockchain is still seen as a faster system for financial transactions compared to other manual methods.
These and more are both a number of benefits of Blockchain technology to the general business persons utilizing this system for financial transactions.
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