A report by global market insights highlights that the blockchain technology market is expected to grow at more than 69% CAGR between the year 2019 to 2025. This emerging technology has its evolving industry verticals to support its massive turn around. From the increased adoption of distributed ledger in the financial and banking sector to the rising growth of cryptocurrency market capitalization, scaling capital venture in blockchain and the gamut of benefits offered by this technology. It is undeniable that a blockchain development company entering into the domain is going to transform the way businesses comply with regulations and data security.
While blockchain technology gains this popularity in the business world, did you ever wonder the reason for its taking the spotlight?
This article will explore the reasons why blockchain has gained popularity over the years and how it can mitigate safety threats to your business.
What is Blockchain technology?
Although there are various conflicting opinions about this technology, no one can completely understate its significance in the current state of the world economy. The technology first gained attention thanks to bitcoin, a very well-known cryptocurrency. However, compared to other cryptocurrencies, it has now become far too overvalued and volatile. Yet the blockchain technology itself is what Bitcoin brought to our notice.
Blockchain technology has been gaining a lot of traction in recent years as a secure and decentralised way to store and transfer data. It was originally developed for Bitcoin, but its potential uses have extended far beyond the cryptocurrency market. One area where blockchain technology can be particularly useful is in securing a business’s security ecosystem.
Blockchain technology in its essence can be defined as a distributed ledger that records transactions on multiple computers, creating a decentralised and secure way to store data. Each block in the chain contains a cryptographic hash of the previous block, along with transaction data. This creates a permanent and tamper-proof record that is stored across a network of computers.
How does a blockchain development company cater to the evolving technological needs?
A blockchain development company offers more than just a cryptocurrency backup network. The essential characteristics offered by a blockchain development company that makes the technology so compelling include-
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Immutability
There are many intriguing aspects of blockchain technology, but “Immutability” is unquestionably one of the most important ones. Immutability is the quality of not being able to be altered or modified and will continue to function as a stable, unchangeable network is this capability. A network of nodes is used to guarantee the blockchain’s functionalities rather than depending on centralised authorities. A copy of the digital ledger is stored on each node in the system and every node must verify a transaction’s authenticity before adding it. Only when the majority agrees the legitimacy does the transaction is recorded in the ledger. This transparency ensures that no node member can add a block of transactions to the ledger without the consent of the majority of nodes. This maintains the block well protected from editing, deleting, or updating by any network users.
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Decentralized
The blockchain network is decentralized, which means there is no governing body or not a single individual in charge of running. Users can immediately access the system via the web and put our assets there because it doesn’t need any sort of regulating body. Users can also store their digital assets, cryptocurrencies, contracts, vital papers or even sensitive data. By utilizing your private key and the blockchain, a user has full control over them. This makes the decentralized system of blockchain restore control and ownership rights to the general populace. This feature is also associated with a multitude of benefits including less failure, no involvement of third parties, zero scams, complete transparency and authenticity to disable cybercriminals penetrating the system.
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Improved Safety
Since blockchain does not require a central authority, no user can alter or exploit any network properties. Furthermore, encryption offers another layer of protection to the system.
But how does it provide unmatched security in comparison to the current technology?
1. Cryptography
Thus giving it an edge over its competitors and adds another level of user safety. Cryptography is a mathematical algorithm that acts as a firewall against intrusions. Each piece of data on the blockchain has a cryptographic hash, hence the network information masks the underlying nature of the data.
2. Irreversible Hashing
With a complicated feature of hashing in blockchain, a person would need to change every piece of data kept on each network node if they wanted to penetrate or modify the network. There may be many millions of people, and every one of them would have a duplicate of the ledger. It is one of the top blockchain characteristics and users won’t have to worry about hackers stealing all of your digital assets.
3. Consensus
Consensus algorithms are necessary for every blockchain to function successfully. They serve as the brains of the system and were thoughtfully designed to support network decision-making. It is a procedure for the active nodes in the network to make decisions. A consensus is unavoidably necessary for a system to operate successfully when millions of nodes are validating a transaction. Nodes may not have confidence in one another, but they might have confidence in the algorithms that drive the system. Every action made on the network benefits the blockchain as a result.
Why must businesses transition to Blockchain as their security seal?
Every area has been affected by blockchain technology, especially how firms conduct their daily operations. Integration of blockchain technology into corporate solutions also eliminates the need for intermediaries in a number of crucial services and lowers costs. Blockchains are protected using a variety of ways, including sophisticated cryptographic methods, logical models, and many others.
Blockchain is unquestionably a security measure. Its capacity to consolidate, motivate, digitise, and safeguard the confirmation of the transactions has made it a disruptive technology. Decentralised cryptography safeguards the records, ensuring the blocks’ impenetrable blockchain security.
A blockchain development company offers these benefits for businesses looking to improve their security ecosystem. The immutable record-keeping, decentralised storage, smart contracts, encryption, and permissioned access make it an ideal solution for securing sensitive data and transactions. By implementing blockchain technology, businesses can improve their security, reduce the risk of data breaches, and protect themselves from cyber attacks.
Numerous industries are testing blockchain technology to identify strategic differentiators that will maximise their commercial potential. Blockchain offers the ability to improve performance and security while also streamlining business procedures.
How does a blockchain development company act as a catalyst in your business security seal journey?
Blockchain technology is not just another fad that will pass attention after a few years. Global businesses can confidently assume that blockchain technology is here to stay with all of its advantages and applications, evolving with disrupting technology.
And as you embark on your digital security journey, Kodehash, the blockchain development company can act as a catalyst to deliver the most cutting-edge security systems over blockchain. We offer the right solution for creating a security posture to keep your sensitive data and assets secure over any network.