Because blockchain information is typically stored in thousands of devices, in a distributed network of nodes, the system and data are highly resistant to technical failures and malicious attacks.
Each node is able to play and store a copy of the database. If a node is damaged or left offline, it does not affect the availability and security of the network.
Unlike blockchain, conventional databases typically rely on one or more servers and are more vulnerable to technical damage and cyberattacks.
Confirmed blocks are very unlikely to be edited again, which means that once the data is registered in a block, it is extremely difficult to remove or change it.
This makes blockchain a great technology for storing financial records or any other data, as any change is recorded and can be tracked.
For example, businesses may use blockchain technology to prevent fraudulent behavior by their employees.
In this scenario, the technology can provide a secure register of all financial transactions that take place within the company. This would make it very difficult for the employee to hide suspicious transactions.
No need for an intermediary
In most traditional payment systems, transactions depend not only on the two parties involved, but also on an intermediary – such as a bank, credit card company or payment provider.
When using blockchain technology, this is no longer necessary, as the decentralized network of nodes checks transactions through a process known as mining.
Therefore, the blockchain system eliminates the risk of dependence on a single organization, and also reduces overall costs and transaction fees by eliminating intermediaries and other third parties.
Let’s summarise the biggest advantages of blockchain:
- Blockchain technology excludes any type of financial intermediaries between people and their money.
- It enables the individual to manage his money in a safe and practical way.
- Thanks to the graphically created and simplified designs of modern wallets, consumers can successfully operate with a wide variety of currencies, including buying, selling and investing.
- The fact that most chains work with public protocols allows for the mass adaptation of the blockchain in various industries, even without much technical knowledge.
- Many companies are reorienting their databases to the blockchain model. These include logistics companies, hospitals and some industrial manufacturers.
- The most popular blockchain applications include smart contracts and crowdfunding.