The main features of blockchain technology — Part One
The blockchain does not belong to a single entity, so it is decentralized, and the data is stored encrypted within the chain, and the blockchain is immutable, so no one can manipulate the data in the blockchain. The blockchain is transparent so data can be tracked if desired.
The main features of blockchain technology
Before the advent of Bitcoin and BitTorrent, we were more accustomed to centralized services. The idea of centralized service is very simple. You have a centralized entity that stores all data, and you only have to interact with that entity to get any information you need.
Another example of a centralized system is banks. They save all your money and the only way you can pay someone is through the bank.
The traditional Client-Server model is a perfect example of this:
When you search for something on Google, you send a query to the server that responds with relevant information. This is a simple Client-Server. Now, centralized systems have treated us well for years, yet they have several vulnerabilities.
In the first step, because it is centralized, all data is stored at one point. This makes them easy targets for potential hackers. If the centralized system wants to be upgraded through one software, it stops the whole system, what happens if the centralized institution somehow shuts down for any reason? This way no one can access the information they have. In the worst case, what happens if this institution (existence) becomes corrupt and destructive? If this happened, all the data in the blockchain would be compromised.
So what happens if we eliminate this centralized entity? In a decentralized system, information is not stored by a single entity. Everyone on the network owns the information.
In a decentralized network, if you want to interact with your friend, you can do so directly without having to go to a third party. This was the main idea of Bitcoin. You and only you are responsible for your money. You can send your money to anyone you want without having to go to the bank.
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