UNDERSTANDING BLOCKCHAIN TECHNOLOGY

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INTRODUCTION TO BLOCKCHAIN

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The phrase "blockchain" is well-known, and you've undoubtedly heard it multiple times by this point. Are you interested about its sudden surge in popularity? It's all a result of the blockchain system's significance in the ecosystem of the world economy.

Let's talk briefly about blockchain technology.

Most people wrongly think that Bitcoin and Blockchain are the same thing, but that couldn't be further from the truth. A decentralized system for preserving and protecting digital information is referred to as a blockchain in simple words. On the other hand, Bitcoin is a digital currency that runs on blockchain technology. As the name suggests, it is a chain of blocks that contains the data of crypto-transactions.

To further clarify, each storage block is connected to the one before it, and collectively they keep data on transactions, the amount of money (in USD and in token) involved, and the persons involved (addresses). The security of the application is ensured by the use of cryptographic hashes, or private keys, which are unique to each block.

Without further ado, let's go over a few of blockchain's key characteristics.

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• DECENTRALIZED

The first key characteristic of the blockchain is decentralization, which simply means that it is a platform that is entirely independent of any single body or authority. People can hold assets in a way that makes them available online at any time and from any location in the world as long as there is an internet connection thanks to the decentralized nature of the system.

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• IMMUTABILITY

Immutability, which essentially says that something cannot be changed, is another crucial characteristic. This function makes sure that the system won't alter no matter what happens!

What precisely am I saying? The blockchain functions in a manner that is distinct from conventional financial systems. It is decentralized because it is built on a network of nodes rather than a single central authority. The digital ledger is replicated on each node in the system and is verified before each transaction. The process is therefore transparent and free from corruption.

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• TRANSPARENCY

Since the system depends on cryptographic signatures to prevent anyone from falsifying or modifying the data recorded in the blocks, transparency is another property of the blockchain. Everyone has access to everything, regardless matter where they live.

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• NO THIRD-PARTY

Every blockchain transaction only involves the sender and recipient as parties. It is not necessary to use a middleman, such one from a bank or other financial organization. The entire transaction is handled by blockchain technology when users swap assets and money.

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• TRANSACTION SPEED

Compared to traditional banking systems, which take a while because the transaction needs to be approved by the authority, it is considerably faster because there is no middleman in transactions.

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CONCLUSION

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The Blockchain is still the greatest invention of all time in my opinion, and it has a promising future in the years to come. The characteristics of this system have proven to be an effective fusion of decentralization, transparency, and security. By removing regional restrictions, a wide range of opportunities are made available to everyone. As long as you are linked to the internet, you are fine to go.

_{Reference
https://data-flair.training/blogs/features-of-blockchain/}