It is the new norm in online security. The concept does not only record and give digital footprints but also provides real-time updates on any action happening on its platform. Initially designed for cryptocurrency, the technology has since improved online transactions by reducing fraud risks.
As the world begins investing in digital currencies, Christian Ellul stresses the need to start thinking of investing in data management systems. He advises company owners to hire public accountants who are conversant with cryptocurrency and its ledger system since it is the new financial world order. The first place to start is learning how the technology works. Its merits give online currency traders an open field, free from any digital theft.
Advantages of Blockchain Technology
Transparency – everybody within the system can see all transactions and changes made within the system. Since the link is shared with other players within the same cycle, transparency promotes openness and accountability. This is why most cryptocurrency or like-minded establishments prefer this technology, especially when dealing with more than 1 partner.
- Security – The technology uses a secure encryption system, which keeps out any third party intrusion. It uses cryptography, a system that enlists the end-to-end encryption system where no third party can snoop through the ledgers. If you are not part of the conversation, you cannot snoop through, making all information shared within the platform safe.
- Records all information passing through its platform – since ledgers are important in auditing and financial management, the blockchain system can store all information on its platform. The storage capacity is huge to accommodate all data and transactions passing through the system. Given the product and its timeline, you can go back to its inception and analyse how the transactions have fared over the years.
- Decentralised – there is no central authority running the system. It gives the participants the ability to charter their way through the set procedures. This approach eradicates vulnerability and the big man syndrome associated with traditional financial systems. Corruption can also occur with the probability of manipulation and third party interference. It also makes running of the whole enterprise cheaper.
- Faster and cheaper transactions – since all the communication and transaction happen on the same platform, relaying information in real-time. Also, based on the currency used within the system, transferring the currency is prompt, eradicating the bureaucracy associated with international or cross-border transfers. It also cuts down the cost of such transactions.
- No alterations – once a transaction or a message is sent through the system, you cannot alter it. This keeps it safe from manipulations and undue influence, especially on auditable transactions. The blocks record all data and information and save them. Therefore you cannot easily temper or mute with the information as it is on the system. Such traits make their users alert before they transact or share information.
- No Downtime – the platform is a network which pings in several locations at any given time. There is no hosting server for the system, meaning that no specific computer is the ultimate backend. This makes the system stable any day at any time, hence no downtime issues.