Blockchain technology is here to stay. Since Bitcoin was released in 2009 and brought blockchain technology to the mainstream, the benefits of decentralised ledger technology have been realized and improved on by more advanced, second and third-generation projects gaining consumer and commercial attention. Blockchain technology offers a secure, self-sufficient, and trustless program which is, with some exceptions, both open source and distributed. You will find these benefits summarized in brief below. 

 

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Distribution

Public Blockchains are most often distributed meaning they are stored and controlled by a broad user base. Data cannot be lost in a fire or stolen from a central storage facility instead copies are spread throughout the network. In most blockchains control is also decentralised enabling the users to control the direction of a project.

 

Security

By nature blockchain technology offers improved security over traditional systems. Content that is stored on the blockchain is irreversible. Each piece of data that is stored on the blockchain is constantly being verified by consensus from users across the network. To reverse a data point or enter fraudulent information into a blockchain would require control of more than half the network.

 

Open-source

The code for most public blockchains is open source. This means that anyone can see the blockchain, how it works, and the transactions which occur. While there are projects that offer privacy functions for user transactions, by keeping code open-source, users can identify areas of improvement and propose amendments to the community. This makes blockchains adaptable. Open-source transparency also allows users to see valuable information needed to make educated decisions in their best interest, whether as a user or investor.  

 

Self-sustaining

A public blockchain creates its own cryptocurrency economy with rewards and incentives for contributors. As long as there are users, the system will continue to function and cannot be shut down due to lack of funding. The cost of running the network is borne by the users, while use is incentivised by demand for the system. While a system’s value may fluctuate dramatically with demand, the system will continue to exist so long as there are users. 

 

Trustless

Because blockchains execute predetermined scripts, code and smart contracts, the outcome of an action is always certain. supply and distribution of an asset is governed by code rather than a controlling party. Users do not have to trust a central party like a bank, or government, instead they can review the objective and immutable code to determine the exact outcome.

In a first-world country trust in institutions such as banks or governments may be taken for granted, however in many nations where there is corruption, political instability, or financial crisis; a system where ownership of an asset cannot be contested, information is not centrally stored and use, as a product, does not require trust, has already proved widely popular. 

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