Blockchain has provided the system of record keeping and database management with a revolutionary leap. These solutions have found their applications in a large number of fields including healthcare, banking, finance, and government services. There must be something to the Blockchain solution that distinguishes them from the traditional record-keeping systems. This article will unfold what sets Blockchain apart from conventional record-keeping solutions.
What Makes Blockchain Better?
Table of Contents
The replacement of conventional record-keeping systems with Blockchain technology has made it clear that the features offered in the latter one find their widespread application and are also better than the conventional methods. The distinction has been made clear in this section of the article:
Secure and Confidential
Digital records are vulnerable to hacking and their security is a top-notch issue. Blockchain technology uses cryptographic algorithms, and the transactions are encrypted. An additional level of security is added to each transaction by linking it with the previous one. This offers data integrity and encryption of data offers confidentiality.
The Blockchain utilizes a distributed network of computers which are called ‘nodes’. The conventional record-keeping systems were centralized and there was more risk of system failure. Blockchain solutions have been able to manage this risk by creating a decentralized system with nodes distributed across the globe. The failure of one or a few nodes doesn’t affect the functioning of the system.
Trustable and Transparent
With enhanced security and a decentralized system, blockchain solutions offer a system where no single authority is in control. This makes it more trustable as there is a lesser chance of complete system failure due to just one node or entity. Transparency is also highly encouraged by Blockchain as it enables anyone to view any transaction. This increases its utility in organizations where transparency is promoted.
Scalability as a Challenge
With increase in the digital transactions, Blockchain networks find themselves difficult to adapt to. Data processing is required in large amounts and scalable networks are required for this. Developers are trying to develop solutions that are fast as well as scalable so that huge numbers of transactions are processed in a short time.
Distributed System for Data Storage
Conventional record-keeping systems store data at a single place while Blockchain utilizes its distributed ledger structure and distributes the data across various nodes for storage. This reduces the risk of complete data loss due to system failure, providing more security and integrity to the stored data.
Public as well as Private Solutions
Blockchain offers two types of solutions, public and private. In public blockchains, transactions are visible to anyone, and the network can be accessed by whoever wants to access it. In private blockchains, the network can be accessed by only those persons who are authorized to access it. Private blockchain networks are more secure in terms of visibility and are mainly utilized by organizations that do not keep their transaction records public.
One of the prominent features of the blockchain which sets it apart from the conventional record-keeping systems and also makes it faster is the instant verification of the transactions in real-time. Once a transaction is initiated in a blockchain network, the nodes present in it verify it instantly. On the other hand, the traditional systems had a long verification process making the transaction process slow and less efficient than blockchain.
Immune to Hacking and Fraud
Blockchain systems are distributed and decentralized and utilize nodes spread across a wide area for their functioning. Any attempt to hack the network will require access to more than half of the nodes present in the network, that too at the same time. The conventional record-keeping systems are managed by a single authority. This makes it easy for fraudsters and hackers to execute a data breach in the network.
Blockchain technology has offered an improved solution for keeping track of transactions when compared with traditional record-keeping systems. Enhanced security, distributed and decentralized networks, public and private solutions, and immunity to hacking are some of the features that set apart the blockchain solutions making it better than the traditional methods. For reading more such interesting articles, keep following our blog page.