The blockchain is one of the latest trending technologies designed specifically for the cryptocurrency. It is a digital ledger technology that records all transactions without any financial intermediary or institution such as a bank.
There are so many benefits that blockchain technology, here we take a look at its top 8 reasons why you must also use for your cryptocurrency.
Benefits Of Blockchain: Decentralization
This is basically the most important benefits that blockchain can provide. With blockchain, no third-party financial institution or intermediary is needed to record and validate transactions. What you have is a consensus mechanism that is designed to agree on the validation of the transactions.a
Transparency & Trust
Since blockchains are shared to everyone and anyone can see what’s going on in it, there is transparency in the system which in turn, establishes trust. Transparency and trust are very important especially when funds are involved such as disbursement or funds where discretion is usually restricted.
Benefits Of Blockchain: Immutability
Once a transaction or any data has been written into a blockchain, it is very difficult to make some changes to it. It may not be fully immutable but the fact that changing a transaction or data is almost impossible, you can see this as a benefit already. You can maintain an immutable ledger of data or transactions without worrying about anything.
Benefits Of Blockchain: High Availability
The blockchain is available to everyone. As it is a system that uses thousands of nodes in a peer-to-peer network, all the data and transaction are updated and replicated which makes it highly available to everyone. Each and every node in the system is updated at all times. In the event that a node or a couple of nodes becomes inaccessible (which is incredibly rare), the system will still continue to work.
All transactions in a blockchain are totally secured.
The existing models seen in many industries such as health and finance are often seen as disorganized. Various institutions create and maintain their own database, which makes data sharing rather complicated since these entities are using different models or systems. With blockchain, however, these different institutions can share one, single ledger among the interested parties. This helps to simplify the different models observed and the system maintained by these entities.
Blockchain also plays an important part in it making faster dealings such as the quick settlement of trades. No verification, clearance, or reconciliation is needed in blockchain because there is only one model that is observed on a shared ledger among the interested parties.
Since there is no third-party involved in a blockchain model, it also helps in cutting expenses or costs that are normally observed from relying on a trusted third-party financial intermediary.