Definition and Characteristics of Blockchain Technology
Blockchain is essentially a decentralized and distributed ledger. And this distributed ledger is actually also a database that records the operations performed by each user (block node) and combines these operations into a secure and tamper-proof chain structure, which will be recorded and synchronized to all nodes on the network.
Since blockchain is based on decentralized and distributed technology, there must be multiple controllers in the blockchain network to ensure the correctness and security of its network data. And as a decentralized, encrypted, shared database distributed among multiple nodes, to make changes to blockchain network content, the consent of all participants (nodes) must be obtained, and it is very costly to reach this point. Therefore blockchain is immutable, indestructible and transparent.
In addition, blockchain has the following features.
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Security: based on technologies such as cryptography and consensus algorithms, data on the blockchain network is not subject to tampering and is safe and secure;
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Efficient: blockchain technology eliminates the need for trusted third parties, improves operational efficiency and reduces intermediary costs.
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Trustworthy: trust mechanisms are established with the help of consensus algorithms and consensus of participants, no longer relying on central authority;
Blockchain technology promises to revolutionize multiple industries by enabling the transfer of digital assets and information in a secure and transparent manner that can reduce the need for intermediaries, improve operational efficiency, increase openness, and reduce central costs. Blockchain has the potential to change the way individuals and group institutions transact and store data.
The Importance of Blockchain Technology
Changing the way data is stored
Blockchain has changed the way data is stored, shared and managed. In theory, blockchain is a secure, transparent and tamper-evident distributed database that enables peer-to-peer data transfer without the trust of a third party. Therefore, it is widely used in the financial sector.
Application scenarios full of potential
The technical characteristics of blockchain, with the development of corresponding technology, gradually unlock the possibility of more real scenarios, such as decentralized applications (DApp) built on smart contracts, Non-fungible Tokens (NFT), Digital identity (DID), etc.
Blockchain technology can also enable faster, more secure, and cost-effective transactions and data sharing between parties. This is likely to revolutionize the way we currently handle and share data.
Disclaimers
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Crypto investment involves significant risks. Please proceed with caution. The course shall not be considered investment or financial advice.