Blockchain Technology and Its Classic Features | Optimus Fox

Blockchain Technology and Its Classic Features

Posted On  June 4, 2020 in  

by OptimusFox

Blockchain Technology and Its Classic Features

The core idea of blockchain technology revolves around the cryptocurrency which is a digital ledger on the internet. The main purpose of the ledger is to record transactions. The information is stored in the form of blocks. Once the information is stored, it cannot be changed. If someone wants to change the new data, it can disturb the data following it. The “blocks” of data stores the information related to the ledger.

How Does Blockchain Work?

The blockchain works like Google docs. According to a renowned tech expert, it works as a large Google doc. As the large document can be edited and changed at the same time by multiple users, the block chain works the same way. The transactions are verified by the others. It is very difficult to hack it. There is no centralized version of this information.

Features of Blockchain Technology

Its features are as follows:

1. Decentralization

There is no centralized information in blockchain applications. The banks, for instance, are a center of transactions and payments. For any process, there is a need to interact with the centralized place, bank in this example. Centralized system is prone to hacking. The data is stored at only one place and easy to access. The decentralized systems ensure that information is not stored at a single place, everybody owns it. The interaction between two parties in block chain can be done without the involvement of the third party.

2. Transparency

The real identity of the person remains hidden. The information is public; anyone can view it. The transparency factor does not make the data insecure but it shows a financial system where transactions are done easily.

3. Immutability

This feature makes sure that once the data is entered into the blockchain, it cannot be changed or removed. Information is protected and cannot be hacked by anyone.

Skills Required for Blockchain Application Development

There is a set of skills required for the blockchain development company. They are as follows:

1. Blockchain Architecture

The clear understanding of the architecture is required for blockchain application development. The concepts of hash functions, digital ledger and consensus should be understood completely. This is a tricky business so it is better to take guidance from someone working in blockchain development company.

2. Data Structures

The application of data structures and their complete understanding is mandatory for development in this domain. Blockchain developers are constantly using the trees as data structures. So the understanding is compulsory to learn the development. The true block chain meaning is hidden under the complete grasp of architecture and data structures.

3. Cryptography

A strong grip of cryptography is a must. Since it is a combination of cryptography and data structures, it is an essential ingredient of blockchain development. Cryptography is used for making digital signatures.

4. Web Development

The basic requirement to have a firm grip of blockchain technology is to be well versed at web development. The hands on experience of web development is the prerequisite of learning blockchain application development.

Pros of Using Blockchain Technology

Some important advantages of blockchain are as follows:

1. Distributed Networks and Nodes

The blockchain is stored along many devices on a distributed network of nodes. The data is capable of saving itself from breaches and attacks. A single node getting offline does not affect the data. On the other hand, traditional databases depend on a single server and they are prone to cyber-attacks. A blockchain development company can help you avail all this advantage of technology.

2. Stability

The system is stable since the data entered cannot be changed or removed. Financial records or any other data remains at its place. The data can be traced for auditing whenever it is required. Thus, it is a stable technology.

3. Trustless System

The distributed network of nodes makes sure that the financial transactions through a process known as mining. Due to this reason, it is sometimes called a trustless system.

Cons of Using Blockchain Technology

As everything has some weak points along with plus points. So, blockchain technology also has some disadvantages that everyone should know, who want to use it.

1. Data Modification

The data modification is not easy once it is entered. It makes the system stable but it is not always good. If you want to change the data, it seems impossible. There remains no margin of error.

2. Storage

Blockchain ledgers take a lot of space to store. According to some sources, 200 GB is required for the storage. It outcasts the space of hard drives and the risks of losing the nodes become high. It becomes difficult to download and store data.

Concluding Remarks

Summarizing the discussion, blockchain technology comes up with great advantages. It is need of the hour. Many businesses have already started getting the benefits of block chain systems. The future will hopefully witness businesses trying to build new applications to add value to their work.

The current situation of the COVID-19 pandemic has created an uncertainty in the global economy. There are speculations going on about the economic impacts of coronavirus on the world. In these days, Optimus Fox is committed to serve its customers by providing blockchain development services of optimum quality at economical prices. We share the burden of economic problems with our clients. Contact us to get a free quote!