Blockchain has gained a lot of traction in recent years, as the technology surfaced after the cryptocurrency Bitcoin emerged. These were first used for securing cryptocurrency transactions when they created a sensation in the industry. While not many favored it initially due to lack of due knowledge but over the period Blockchain development has become one of the most worked upon areas in the technology.
With the Financial Services mainly joining the bandwagon of the cryptocurrencies in using Blockchain Development Services to make the transactions robust, other industries are also looking forward to leveraging this technology for making their operations more robust and secured.
Before blockchain, there were data records known as distributed ledgers that a third party recorded, but with blockchain, this requirement of the third party is eliminated. These ledgers record the information related to the transactions, and there are chances that these records could be manipulated persisting to any fraudulent activities.
This is the main reason behind using Blockchain Development to ensure foolproof security of the records that cannot be manipulated. Blockchain has thereby made the operations much more transparent that cannot hold any discrepancies. That is why it has become popular in the financial services industry that was the first one to adopt this practice.
Some of the blockchain development tools include Geth, Mist, Solc, Remix, and many more. Here’s all you need to know about Blockchain Development. To get a fair idea of Blockchain Development, let us check out the characteristics that make Blockchain a promising technology that has a bright future.
Blockchain is Rigid
It follows firm rules that cannot be modified in any circumstances. The data in the ledgers cannot be changed once it is recorded which makes it secure against any discrepant activities.
It uses the Hash Function
The Hash Functions are transformative functions that are one-way in nature. These functions run the inputs with the help of an algorithm to return a hash code which a unique digital code as the output.
Every time the input is modified, the value of the resulting hash code changes, and thus using the method of Hash Function keeps track of all the changes that are being made throughout, thus no values in the ledgers could be changed without any recorded history.
This function makes Blockchain highly reliable among the finance industry folks.
Blockchain keeps records of all the changes that are being made in the given ledger record. These transactions happen at each of the nodes and are open to all the stakeholders, making Blockchain a transparent approach for maintaining transactions.
High-level Security using Cryptography
Blockchain offers high-level security to your transactions by using cryptography. All the transactions that are made, have encrypted keys as their reference, which are then verified.
This makes the transaction very secure as the verification happens at each of the nodes where the transaction is recorded. Thus, for a hacker to manipulate any transaction, it needs the changing of the data both at the origin and the verification point on every node, which is highly impractical, making it very secure.
While the conventional transaction systems in use are centralized, blockchain unlike them is decentralized in nature, where each of the transactions has its immutable Digital ID which is unique, preventing thefts.
Distributed Ledger for robustness
Blockchain has its ledger distributed over a network of systems that are used to maintain the concurrent copies of every transaction. This makes the operations more secure and robust against thefts and single-point failures.
In this case, if either of the systems gets collapsed or corrupted due to some, or other reasons, data can be retrieved from other systems in the network, preventing complete data loss.
With these characteristics that offer benefits such as security, integrity, transparency, robustness, better processing, and low costs, blockchain development is a technology that has a lot of scope in the future as the other industries apart from the financial sector are looking forward to leveraging it.