Blockchain technology comes with many advantages. There are a lot of sayings that this technology is going to revolutionize many industries. These are five advantages of this new arising technology that I would like to point out.
One of the prime reasons blockchain is intriguing to businesses is that this technology is almost always open-source. That means other users or developers have the opportunity to modify it as they see it.
But what’s most important about it being open source is that it makes altering logged data within a blockchain incredibly difficult. After all, if there are countless eyes on the network, someone is probably going to see that logged data has been altered.
This makes blockchain a particularly secure technology.
2) Reduced transaction costs
As noted, blockchain allows peer-to-peer and business-to-business transactions to be completed without the need for a third party, which is often a bank.
Since there’s no middleman involvement tied to blockchain transactions, it means they can actually reduce costs to the user or businesses over time.
3) Increased efficiency and speed
When you use a traditional system, trading anything is a time-consuming process that is prone to human error and often requires third-party mediation.
By streamlining and automating these processes with blockchain, transactions can be completed faster and more efficiently. When everyone has access to the same information, it becomes easier to trust each other without the need for numerous intermediaries.
Once the data has been written into the blockchain, it is tough to change it back. It is not genuinely immutable but, since changing data is extremely difficult and almost impossible, this is seen as a benefit to maintaining an immutable ledger of transactions. In order to change it back, you need the support of more than 50% of the entire network.
5) High availability
As the system is based on thousands of nodes in a peer-to-peer network, and the data is replicated and updated on each and every node, the system becomes highly available. Even if nodes leave the network or become inaccessible, the network as a whole continues to work, thus making it highly accessible.
All you need to access the blockchain is a mobile device and wifi connection. With an internet connection, you can access it whether you’re in Nicaragua or New York.