What is the Importance of the Blockchain Technology?

The name of Blockchains is very important when we talk about the future of money. But what does it really mean? And how does it differ from conventional currencies? These are some interesting questions and we will try to answer them so you can have a good idea about this technology.


When we say “blockchain”, it means a distributed ledger that is accessible by everyone across the network. The network participants therefore all have the same ability to check the ledger and follow the rules that are imposed on them. This immutability is one of the main features of the Blockchains technology. The technology cannot be tampered with or changed since the network participants hold all the information there and therefore this feature is very important when we talk about privacy.

The second feature of the Blockchain is that it uses a well-known cryptographic hash function called Scrypt which is well studied and tested. The hash function ensures that no information is changed once it has been processed or recorded. With these two properties, the Blockchain is said to be one of the most secure forms of public networks.

One of the most interesting applications of the Blockchains technology is in the arena of internet marketing. The Blockchains are said to be the most cutting-edge forms of internet marketing in the present. This revolutionary technology is the core technology that underlies most of the currencies used in the world today. The use of the Blockchain reduces the cost of advertising and reaching out to millions of subscribers worldwide. It also reduces costs and makes the business reach to new customers who are not yet aware of their existence.

The Blockchain is the best way to keep track of transactions that take place in the ledger. Transactions on the ledger can either be secured by the users of the ledger themselves or by entities called ‘consortiums’. The use of the Blockchain will help people stay abreast of the activities going on in their organisation and make sure that there is transparency in the ledger. Transactions done on the Blockchain are said to be safe since there is no way of double entry, making the ledger free from any kind of fraud. Apart from this, the users of the Blockchains can participate in the distribution of the ledger’s data, thereby ensuring its safety and quality.

Unlike the traditional databases, which are prone to data corruption, the Blockchain is immune from corruption. Furthermore, with the help of the Blockchain, the users of the ledger can easily adjust, remove or update any piece of information, irrespective of its position in the chain. This feature of the Blockchain is particularly useful for businesses, since they do not have the time to check the ledger for changes on a daily basis. The use of the Blockchain is also said to be more secure means of exchange since unlike the traditional databases, the transactions cannot be tampered with or copied. The latest features of the Blockchain technology such as its proofs-of-work and its off-chain attributes make it highly preferable and secure compared to traditional databases.