What makes Blockchain so special?

Blockchain pioneered the wave of establishing trust with anonymous identities and redefining online transaction management.

Blockchain technology came into inception when Satoshi Nakamoto (an unidentified individual or a group) submitted a paper based on his research to introduce bitcoin as a digital currency. During its early days, blockchain was considered to only be a part of the bitcoin currency. With time, blockchain found its applications apart from bitcoin and entered industries where this technology could make a difference.

Decentralizing the system

Blockchain focuses on decentralizing an entire network. Decentralizing a system refers to an arrangement where there is no single owner of the network. Everybody on the network stores a copy of the ledgers and of every block. Using blockchain, the need for middlemen and trust authorities have been eliminated. Completing transactions have become easier as this technology allows people to trust each other rather than having them to prove their identities before making any transaction.

Transparency and Privacy

Since blockchain decentralizes the system and enables everybody to arrive on the same network, the ability for people to view transactions becomes easier. Blockchain is a technology that increases transparency of transactions, as everybody on the network has a copy of the ledger. This makes the blockchain ledgers tamper-proof.

Using blockchain technology, people can make transactions from any part of the globe. All they need to do is register themselves on these ledgers. Once registered, they can order anything from any part of the world pay on the blockchain.

Privacy on blockchain is another feature of blockchain that makes it so special. Privacy in blockchain can be maintained as you publish the required data, and still rest assured that your information will not be misused. For people to keep their transactions and identity private, they can create private networks where access is limited and people can choose from a list of entities to be added onto that blockchain network.

Securing the blockchain

A feature that makes blockchain stand out of the crowd and showcases it as one of the prime time technologies is its security. Blockchain has not been hacked as of yet. This technology uses public and private keys to secure the blocks created on the ledger.

While making a transaction, your public key is converted into a private key and sent to the person who you want to make a transfer to. The private key sent to the user is a hashed version of the crypto-currency that is to be sent to the receiver. During this transaction, your private key is secure and is not being exchanged with anyone.

One of the reasons that blockchain has not been hacked yet is because every block that has been created in the system has its unique cryptographic key created and stored in the next block. In this way, every block is connected to another, and for a hacker to hack into any one of these blocks; she has to hack into each one of these blocks stored on the ledger to gain access to the system. Even if a hacker can hack into any one of the blocks, any unauthorized change is noted by the system and every block in the system gets a warning, thus blocking the affected block.