What is Decentralization in Blockchain?
Blockchain and decentralization are often spoken synonymously. But the fact of the matter is that Blockchain works on the principle of decentralization. Blockchain gained prominence after the world got to know about Bitcoin. Digital currency works on peer-to-peer interaction, which is not dependent on third-party validation and approval. The Blockchain that forms the framework for the underlying technology of Bitcoin offers decentralization, transparency, and immutability as its core features.
More about Blockchain
In simple words, Blockchain is a type of database. Database means a collection of information, and this information is stored electronically on a computer system. When we talk in perspective of Blockchain, then it is the distributed ledger technology where the stored information is not present on the central server; rather, it is distributed across the nodes. In simple words, this information is easily accessible from anywhere. Blockchain also offers several other features like:
- Transparency-One of the key features of Blockchain is transparency. All the information stored on the database is visible to all the people in the network. One can access this information from anywhere. Besides, every information when entered into the database is encrypted cryptographically and is time-stamping. This makes tracking and tracing data very easy. And this eventually adds to the transparency of the data.
- Data security- One of the key reasons that make Blockchain so popular is data security. Since all the information on the ledger is encrypted cryptographically, hampering the data becomes a bit difficult. At the same time, all the information will be added in the form of blocks, and every block is linked with each other. Any changes in this block will be time-stamped and will be visible to the people in the network, thus enhancing the security of the system. Even the slightest of the changes will be easily visible to all.
- Decentralization- When we are talking about Blockchain, we cannot undermine decentralization. In simple words, decentralization means that there is no central server or governing authority. Rather the validation and verification are done by nodes of the system. This nullifies the dependency on the third party. All this eventually makes Blockchain far more efficient. It runs faster by reducing the transaction time. Since there is no dependence on the third party, one doesn’t need to pay transaction or processing fees. All this eventually makes Blockchain a cost-effective solution for the monetary exchange.
The unique features of Blockchain make this technology such a powerful one. It is now finding multiple applications across the different industrial segments. From food to finance, every industry is now hiring Blockchain experts to leverage Blockchain technology. Blockchain developers work on creating decentralized platforms, smart contracts which will be used by companies for the transaction, making payment, securing data and more.
It has thus opened the gateway of opportunity. If you, too, are aspiring to become a Blockchain expert, and want to enroll in the blockchain certification program, then you must connect with the Blockchain Council today. It offers the best online certification program in Blockchain and covers all the theoretical and practical applications. To know more, connect with the Blockchain Council today.