There is no doubt that we are living in a digital world and blockchain technology is among the world’s leading platforms for digital assets. The blockchain platform is increasingly becoming essential in the modern world, but the big question is; why use a blockchain?
As this technology becomes more popular, a lot of money is also spent on research to make it a better innovation. Unlike a traditional database,blockchains are highly decentralized and promise a lot more than improved security.
For instance, blockchain technology could be beneficial in countries where censorship is a significant problem since such acts are impossible on the protocol level of a blockchain.
Why Use a Blockchain?
Here are some of the top reasons why most people and organizations prefer to use blockchains and not traditional database systems.
Security
Blockchain technology is more secure compared to the centralized database systems. This means that a blockchain is far less likely to be a target of a hacking attempt since there is no single point of failure.
If one block on the blockchain is hacked, it will automatically be rejected and expelled from the blockchain before any damage is done. Typically,the more nodes the network has, the more secure it is. For instance, Bitcoin is widely considered as the most secure and sophisticated public blockchain today.
Cost Reduction
If you are using the highly distributed blockchain technology that operates over a network of nodes, you no longer need to hire additional staff members to maintain your DevOps system.
Small businesses can make massive cost savings by embracing blockchain technology and smart contracts to lock out intermediaries for both financial services and administrative tasks.
Transparency
One of the top reasons why blockchain technology is intriguing businesses all over the world is that it is highly transparent. This means that other users and developers have the opportunity to modify it as they deem fit.
However, what makes it more exciting is the fact that it is almost impossible to alter any data stored on the blockchains. After all, there are many nodes on the network, and one of them is probably going to notice a change on any record.
Faster Transaction Settlements
When it comes to conventional banks, it isn’t surprising for some transactions to take days or even weeks to settle completely. This is due to the sophisticated protocols in bank transferring software as well as the fact that banks are only open during the normal business hours, five days a week.
Some financial institutions are also located in different time zones which might complicate things further. However, blockchain technology works 24 hours a day, seven days a week. This means that all block-chain based transactions take considerably less time to process.
Conclusion
While we still don’t know the full limits of blockchain technology, it is safe to say that use cases that have passed inspection are performing pretty well. The above discussion provides a quick snapshot of why use a blockchain.
Blockchain technology offers some incredible advantages over conventional databases that you can’t afford to ignore. It is only a matter of time before blockchains takeover traditional databases in every aspect of our daily lives.