If you have been noticing the market of investing and digital currency then you must have come across the term “blockchain”. Let us discuss the idea behind the creation of a blockchain platform.
What Is A Blockchain Platform?
The concept of blockchain may initially seem complicated, and it is to some extent. But the core concept behind this is quite easy.
A blockchain is an immutable, shared ledger that allows the process of recording transactions and also tracking assets in a business network. An asset can either be tangible like cash, house, land, or car, or it can be intangible as well like patents, intellectual properties, branding, or even copyrights. Digitally anything that has value can be traded and tracked on a blockchain platform. This reduces the risk and also the cost for all who are involved. Blockchain is now being used in all the corners of the globe. There are many blockchain platforms in India and in other parts of the world as well.
Why Is A Blockchain Platform Important?
Businesses operate on information. So the quicker it is received and the more accurate it is, the better for any business. So the technology of blockchain is best for the delivery of that information, as it offers immediate, shared, and fully transparent data stored in an immutable system of ledger that can be viewed only by the members who have granted the permission to do so.
Any blockchain network has the ability to track payments, orders, productions, accounts, and much more. And because the members share a single dimension of the truth the user can send every detail of a transaction end-to-end giving them greater confidence along with new opportunities and efficiencies.
Key Elements of Blockchain
Now that you know the concept of blockchain and how it works, you will require to know the elements that every blockchain platform should have. Here are the 3 primary elements that every blockchain network consists of.
Distributed Ledger Technology
All the participants of the network have complete access to the distributed ledger along with its immutable record of transactions. Along with this shared ledger, all the transactions are recorded once, discarding the duplication of effort that is typical of the primitive business structure.
No user can tamper or change with a transaction after the transaction has been recorded to the shared ledger. If the record of the transaction has an error, a new transaction must be added to reverse the errors and then both the transactions will be visible.
To increase the speed of the transactions, a set of rules called the smart contract is kept on the blockchain and is automatically executed. Conditions can be defined by a smart contract for corporate bond transfer, terms for travelling insurance, cryptocurrency like Cardano, and many more.
Is Using Blockchain Platform Secure?
The technology of blockchain accounts for the problems revolving around security in the world of the internet. First, the latest blocks are stored chronologically which implies that they are always added at the end of the blockchain. If we look closely at the blockchain of Bitcoin we will notice that each of the blocks has a position on the chain known as “height”. As of 2020 November the height of the block has attained 656,197 blocks.
After addition of the block at the end of the blockchain, it is nearly impossible to go back and then change the block’s contents unless the majority attained the consensus to do so. This is because each block has its own hash along with its previous block.
Here is why that is crucial for security. Let us assume a hacker wishes to change the blockchain and steal the cryptocurrency. If they had to change their own single copy it would no longer be at par with the other copies. When the copies are cross referenced by the users against each other, they would find this one copy stand out and the version of the copy that the hacker used would be casted away as being illegitimate. Let us see some examples of blockchain platforms.
Here is a top blockchain platforms list to consider for 2021.
- IBM Blockchain Platform
- Hyperledger Fabric
- Hyperledger Sawtooth
Among the list the best is IBM and Ethereum. You may wonder what is the IBM blockchain network. When it comes to the use of blockchain, IBM is the pioneer company. It is among the top blockchain platforms 2021. It is known for formulating effective and transparent business functions. It is a famous platform to use when it comes to blockchain.
Advantages Of Using A Blockchain Platform
The invention of blockchain technology has done a great benefit for the cyber world. Things now have become more secure, and above that it facilitated the discovery of digital currencies that will alter the financial world. So here are some advantages of using a blockchain platform.
- Developed accuracy by eliminating human involvement in the process of verification
- Reduction of cost by discarding third-party verification
- Decentralization makes it difficult to tamper with information stored in the blockchain.
- Transactions are private, secure, and efficient
- It is a completely transparent technology
- Provides alternatives to banking and ways to secure personal data for citizens of a nation with underdeveloped and unstable governments.
Disadvantages Of Using A Blockchain Platform
Bow that you know the advantages, there are certain disadvantages to this platform that we should also consider.
- Prominent cost of technology that is associated with mining cryptocurrency.
- Low transactions every second
- The blockchain platform being an anonymous platform has a huge history of being used in illegal activities.
- It has strict regulations that every user will have to abide by.
With numerous practical projects for technology already being explored and enacted the ideal of blockchain platform is finally making its mark in the cyber space with no small part and all because of digital currency. As we get ready to head into the 3rd decade of blockchain there is no question of if companies adopt this technology, the question is when will they do so.