Blockchain is a digital ledger which eliminates the need to have a third-party verify transactions. Blockchain is immutable. All data can’t change once it has been recorded. What are the advantages of Blockchain? Let’s find out.
Blockchain is a digital ledger
What is Blockchain? Blockchain is a peer-to-peer digital ledger that is hosted by a decentralized peer network. This digital ledger stores a record of transactions as discrete “blocks” that are cryptographically linked together to create a chain of information. Blockchains are a great way for content distribution, Intellectual Property rights protection, and to monetize content. They can also eliminate middlemen and simplify transactions.
It is immutable
Blockchain’s benefits include the fact that data cannot be altered, even by the system administrator. Blockchains also offer advantages in auditing, allowing the provider and recipient to prove the integrity of data. This is especially useful when dealing in financial transactions databases. Once the transaction is complete, the cash flows from point A to point B. The immutability of the blockchain makes it the perfect platform for financial transaction databases.
It is costly
The cost of storing data on the Blockchain is enormous. A single megabyte image on the Blockchain will cost nine million dollars. This is equivalent to the power consumption of Ireland. Furthermore, the associated communication volumes would overwhelm individual servers and smartphones. Therefore, the cost of scaling up the Tron API network could bring the internet to a standstill.
It requires cryptography
One of the most fundamental requirements to creating a blockchain is cryptography. It is an important aspect of any secure system and is essential to the integrity of digital transactions. Cryptography uses mathematical algorithms to protect messages sent over the Internet. To ensure that only intended recipients can view messages, encryption and decryption are essential. It is important to use encryption software like AES to protect transactions on the Blockchain.