Cryptocurrency exchange development company
Blockchain is an open and distributed ledger, which can record transactions between two parties in a verifiable and permanent way. Once recorded, the transaction data cannot be modified retroactively, without alteration of all subsequent blocks. This also allows users to verify and audit transactions without much cost. Blockchain is a continuously growing list of records, linked and secured using cryptography (secret codes which prevent third parties or the public from reading the transaction data), wherein each Block contains a timestamp and transaction data, managed by a Peer-to-Peer, P2P (User to user) network.
Person A requests a transaction involving crypto-currency, records, contracts, or other information → The requested transaction is broadcast to a P2P network consisting of computers, known as Nodes → The network of Nodes validates the transaction and the user’s status, using known Algorithms → The verified transaction is combined with other transactions to create a new block or data for the ledger → The new block is then added to the existing blockchain, in a way that is permanent and unalterable → The transaction is complete. The point to remember here is that the transaction data has no physical form, exists only on the network, and has no intrinsic value to third parties.
Quite simply, blockchain is an autonomously managed and regularly reconciled digital ledger, which can record not just financial transactions, but everything of value. Blockchain enables the exchange of value without any centralized intermediation by arbiters of money and information. It is a kind of self-auditing ledger that reconciles itself every 10 minutes.
ADVANTAGES OVER CENTRALISED DATABASES:
Centralized data is controllable and hence the data is prone to manipulations and theft. On the other hand, in a blockchain, there are no centralized points of vulnerability for the information to be hacked and corrupted. Because of storing blocks of identical information across the network of the blockchain, it cannot be controlled by a single entity, has no single point of failure, and hence cannot be modified retroactively. Anything that happens on a blockchain is a function of the network as a whole.
Further, blockchain reduces the TAT of processes, and because of being distributed, it makes data transparent for everyone involved. Blockchain technology can help make even the traditional processes faster, more accurate, and more secure, while drastically reducing the costs involved in Database Management. The only reported problems in blockchain technology have been due to human errors and bad intentions, and not because of any flaws in the technology.