Nigeria: What Is Blockchain
Blockchain has many advantage over the traditional ways to store information. The data is stored in blocks. All the nodes on the network keep the record of the blocks. User privacy, low processing fee, the strength of network and insurance that the data is not manipulated are some of the main advantages of blockchain.bit.ly Some advantages are given below:
- High Accuracy
- Low Cost because of Third-Party Removal
- Decentralized Network Makes it Hard to Hack
- Efficient Network
- Transactions are Publically Visible
- Provides Privacy and security
High Accuracy
All transactions on the blockchain network are verified by thousands or millions of computers all across the globe. This all human involvement in the verification of transactions so results in higher accuracy. However, if a computer/node makes a mistake and downloads the wrong copy of data that will not be spread to all nodes until the same wrong copy will found on more than 51% of total computers. As we discussed above the 51% attack is not profitable. Is quite impossible to execute.
Low Cost
Whenever you make a transaction via bank, you need to pay the bank a fee to verify your transaction. Here the bank is a third party between the sender and receiver and takes its commission. Almost everything is now verified by third parties and they make money. As we discussed above in a blockchain network all transactions are verified by a network of computers.bit.ly There is no central authority to take the fee however miners take a small fraction of fee in the same token/currency to verify the transactions. Even users can select the priority of the transaction. Pay less fee for fewer priority transactions. Bitcoin network has a very low fee start from $0.1 to $2.
Decentralized Network
Blockchains does not store the information on a central location. Each node/computer that is connected to the blockchain network anywhere from the world has the full copy of all the transactions. That makes it difficult to hack. Change any information. If a hacker wants to change any information or transactions, he must need to change the blockchain data of more than 51% computers that are connected to the network. Whenever a new block added to the blockchain all the nodes connected to the network needs to update their copy of the blockchain.
Efficiency
When you make a transaction via any traditional methods say banks there is a central authority that verifies all the transactions. If you submit a deposit check on Friday evening the funds will arrive in your account after 2-3 days on Monday. 7.bit.ly Transactions on a blockchain network are confirmed within a few minutes (or in seconds depends on the network type). Considered secured after few confirmations (in case of Bitcoin 6 confirmations ensures that the transaction will not be changed or altered). Transactions on a blockchain network are confirmed within a few minutes (or in seconds depends on the network type). Considered secured after few confirmations (in case of Bitcoin 6 confirmations ensures that the transaction will not be changed or altered). Blockchain transactions are useful for the cross border where multiple third parties are involved and take a high fee. Time zone difference is also an issue for traditional transactions.
Transparency
All the transactions are publically visible on the blockchain. The transactions show date, time, amount and wallet addresses of the participants keeping their personal information hidden. Added to this blockchain technology is open source and anyone can see the code and contribute for its development.bit.ly When you want to add any new feature of change code the majority of the network will support your work for implementation. Blockchain uses decentralized voting system to add or remove any features. As we discussed all the is stored in to blocks. Visible to everyone on the network but the personal information is hidden. You can only see the transaction history of an address but you never knew the identity behind the address (exception: the person is using a third-party wallet that requires KYC). Many people misunderstand that Bitcoin is anonymous, Bitcoin is pseudo-anonymous because it shows everything about a transaction except personal identity. It’s same as when a bank hacks all the data. Information of users is compromised. Blockchain provides full security. No one can change or alter the transactions.bet9ja.com Whenever anyone makes a transaction, thousands or millions of computers connected to the network rush to confirm the transaction to take the confirmation fee. The transaction copy is saved in all the computers that are connected to the network if a copy is changed or altered by any ways other computers reject the node and force it to download the real copy (majority copy).