In this article, we will discuss on “Blockchain Technology – A Valuable Technology for Digital Projects”. A blockchain is just a list or chain of blocks that have its own digital signature and possess digital signature of the previous block, and have some stored data (this data could be transactions and HASH could be declared as Digital Signature). For this purpose, the programmers use this blockchain technology for digital security based projects and highly result in oriented projects.
Let’s have an overview of the advantages and disadvantages of the Blockchain Technology.
It has several advantages, which are most valuable for the Blockchain developers.
Direct sharing of the database and enforce constraints
Blockchain enables a database to get shared directly without a centralized administration. With some excellent logic of centralized apps, blockchain transactions have validation and authorization functions to put the constraints into effect. Hence, blockchain acts as a consent mechanism to put the nodes in sync, transactions can be confirmed and processed alone.
As a database is still a substantial thing with bytes and bits, the Blockchain is a valuable technology to handle database. In financial organizations like insurance, finance and banking industries, contents of the database are stored in the storage area with high security and care. These databases need proper care to avoid any corruption and hike chances. For this purpose, these companies hire third-party experts with a proper reliable agreement to maintain their databases.
Relational Distributed database
Blockchain connects several computers to get participated in single or multiple networks, by distributing the database access. For Instance, eBay buys and maintains a personal computation power system. However, the blockchain Ethereum organization simply contributes their computer service to their own network, just by installing their own software. Distribution of service helps reduce corrupt, cybercrime and fraud risk. Multiple nodes take part in the network to reduce the force of network attacks.
Blockchain conducts digital transactions between two unknown parties who have the least trust in each other. Hence, the bank has been used in these digital transactions to get conducted secured transactions between customers to customers and customers to other bank customers. For instance: A digital coin is saved as a file in your computer and you have used it by copy and paste method frequently. The worth of the digital currency would be decreased to 0. Hence, Banks implement appropriate duplicate detection methods to increase trust on digital currency system.
Therefore, Blockchain distributes the Ledger to several Nodes, and synchronize the Ledger through Consensus to make a trustworthy transaction between two unknown people.
Immutable transaction indicates the impossibilities of undoing one successfully completed transaction across the network. Above all, it becomes critical to change a completed transaction. For instance: In a Bitcoin public ledger, the viewer can check well the numbers of Bitcoin available in the account of one person. Hence, one can accumulate the supply of bitcoin easily.
Decentralised Database reduced cost
Blockchain reduces the centralized monopolies and reduces costs through distributed networks. This enhances sales competition in the online market, by making entry easier, applying pressure on all participants to be more effective.
Replacement of third party service and reduce excess maintenance expenses
In contrast, implementation of blockchain replaces these third-party services with a properly distributed database and expert cryptography tactics. Hence, the investment in manpower will be reduced and the database will be more secured.
With high-quality performances, the Blockchain technology has also some limitations as follows.
As blockchain is a decentralized database based technology, it always performs slower than centralized database based technology. If you will make available all the required components, you can enjoy the performance of the web applications accordingly. Especially, blockchain technology is designed for web security purpose. The online users and important financial institutions take the opportunity of this technology to keep their assets secure.
Signature verification issues
The blockchain transactions need to be digitally signed through a private-public cryptography scheme like ECDSA. Otherwise, the transactions won’t be trustworthy. These signatures are generated and verified in a complex method. However, in centralized databases, the individual verification of every request will be done.
Hope, this article gives a better confidence to the blockchain developer and clients as well. On the whole, they can decide well about proceeding with the next step of Blockchain projects. But it depends upon the website owner, who must be interested to get implemented all the tactics of Blockchain technologies like sufficient nodes and consensus, etc. Then only, he/she will get a better result from the investment. Hence, the consultancy of a blockchain expert is required before proceeding for such kind of projects.