Blockchain technology is a breakthrough in the world of modern technologies. First of all, it helps to create, protect, and transfer such thing as a cryptocurrency. However, it doesn’t mean that the Blockchain technology can be used only like this. Right now people just don’t know all its variants of usage. Right now, many financial organizations are interested in this technology, which means that in a couple of years, it can become very popular. Even now, it deserves special attention. This article provides the Blockchain review in order to explain this technology and examine its features and potential.
Blockchain review: defining Blockchain
It is essential to start Blockchain review from the simple definition that will explain what this technology is. The Blockchain is a technology that records virtual operations like a ledger that consists of blocks. Every block is a piece of information. All these blocks have strong connection thanks to cryptographic validation or hash. Basically, Blockchain is this connection among blocks that is impossible to break. Hashing function encodes information, which makes it very hard to decode. Apart from this, the ledger with all the operations have every user or node, and every new operation is checked by the node computers, which makes it impossible to change the information in the ledger. As you can see, in this part of the Blockchain review, this technology is well protected and allows sending and receiving any information without fear that it will be stolen or changed by someone.
Blockchain review: blockchain main features and principles
Reading this Blockchain review article, you need to find out the major features and principles of this technology. In accordance with the detailed Blockchain review, there are such features of Blockchain:
- It is a ledger or diary that contains data about operations.
- Every operation is protected by a hash.
- Hash or hashing function is a chain of letters and numbers.
- Operations enter the order in which they appear. Order is vital.
- The hashing function relies not only on the operations but also on the hash of preceding operations.
- The smallest changes in an operation create a different hash.
- The operations are verified by nodes, which check the hash.
- If an operation is approved, it is added to a block.
- Every new block is connected to the preceding blocks creating Blockchain.
- This technology is beneficial only if this ledger is used by many devices (nodes).
- The technology is updated automatically every ten minutes.
Apart from the important features of this technology, this Blockchain review article also presents its main principles.
- Distributed base of data – it means that every computer connected to the technology has access to all information.
- P2P or decentralized transportation of data – it means that nodes communicate directly without having the main computer.
- Transparent and anonymous system – it means that it is possible to hide the identification data from others or show it. However, all of the operations are transparent to the public.
- Can’t be turned off or controlled – it means that the system will exist until every computer turns it off, which is almost impossible.
- Blocks can’t be faked – it means that the verification of the data by nodes guarantees safety.
- Blockchain isn’t an average database – it means that this technology can’t be beneficial if to use it as an average database.
- Blockchain system is decentralized, but logical – it means that one person or some small group of people can’t control the technology, but it has logic, which makes it logically centralized.
This part of the detailed Blockchain review article has described the main information about the technology and showed its advantages. However, you also should understand that it also has its weak sides.
Blockchain review: weak sides of Blockchain technology
As you have already understood from the previous parts of this Blockchain review, this technology has a great number of pluses. One of the most important its pluses is the high level of security. However, it also has some weak sides.
- The technology is dependent on the number of active nodes. If the number of active nodes is small, it won’t use its potential fully.
- The technology isn’t able to deal with the same amount of operations that such organizations as Visa can.
- The technology isn’t vulnerable only until the majority of nodes belong to one organization. If somehow some company will find the method to do this, Blockchain won’t be effective anymore.
- The technology can’t complete all of the operations very quickly. If you aren’t ready to pay for your transaction quite a lot, it might take much time.
- As you can see from this Blockchain review, the technology isn’t perfect, and it isn’t able to replace the giant firms that work with the transactions. There are still a few problems that should be solved.
Blockchain review: utilization of the Blockchain technology
Another important part of this Blockchain review describes the spheres where the blockchain technology is used or can be used. According to any Blockchain review, this technology is perfect for such thing as a smart contract. The smart contract is the same as average agreement, but with automatic enforcement of the obligations that it has. However, this is too general application of the Blockchain technology because smart contracts can be used in various spheres. There are at least ten possible variants where it is possible to use this modern technology.
Warranty claims. Implementation of smart contracts with the help of Blockchain can make the process simpler and less time-consuming. Before Blockchain, it was necessary to verify everything with the help of people, but this technology can automatize the process.
Derivatives. They are widely utilized in exchanges, and they deal with the values of belongings. Blockchain can automatize and make derivatives trading less expensive.
Insurance claims. Theoretically, Blockchain technology can help with submitting the insurances claims and getting immediate and automated pay-out.
Verification of identity. These days, verification of identity is very time-consuming and complex. If fraudsters lose vulnerable gaps in a centralized system, they won’t be able to attack it.
The Internet of things. IoT has deals with various physical devices that have a connection with software, networks, sensors, and other characteristics. Such devices gather and transfer data, which means that Blockchain technology here perfectly fits.
Storage of the files. Electronic storage of the files is a necessary thing. Yet, modern storages are centralized, which means that they aren’t very protected from the hackers. In accordance with the Blockchain review, this technology can fix this problem.
Intellectual possession protection. Level of protection of intellectual possessions can also be high if to utilize this modern technology. One of the good examples is the app that has a name “Ascribe.”
Crimes investigation. Criminals have many different methods to commit crimes online. With the implementation of Blockchain, many opportunities to do something illegal will be lost.
Elections. According to the detailed Blockchain review, this protection system can be very effective during elections. It will be impossible to falsify data.