Understanding Blockchain Intricately

Data is of utmost relevance in the digital age and keeping it secure becomes equally important. Decentralizing the data makes it secure, something which is emerging in digital town gradually and is expected to revamp the scenario. The use of Blockchain technology helps bring security and privacy in storing the data by decentralizing it. This advantage of the technology makes it highly beneficial not only for the common users but also the businesses.

Decentralized over Centralized Data

There are a number of reasons why decentralized data storage is a better option than the centralized one for business organizations. One of them being that the role of the central authority is eliminated and the users no longer need to put their trust in them. The removal of these third parties means that the data is not being sold to advertisers who stalk us wherever we go.In fact, our backed up data is safe even if the portal is not working anymore.

Other Advantages

At present, the shutting down of a website impacts everyone because of inability to access personal data, but that is not the case with decentralized data. Even if one node goes down, it cannot take down the entire network and we can still check our mail and make transactions. Since there is no central party in power, there is no censorship and everything is out in the open for everyone to see. This means that the government or any other higher authority cannot control the information accessed by the citizens. There is also an incentive of economic stake in decentralized network. This provides motivation to people to contribute in the Blockchain network and receive ownership of the same, as opposed to the centralized network where only one party makes all the profit. Additionally, data can be broken and stored on different networks which lessens the possibility of cyber-attacks, thus making it secure and reliable.

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Software applications using centralized systems have been in use since long, but the decentralized data applications are here now, and for the better. These transparent apps have a transformative potential for the technological landscape due to their ability to provide security to data.

Decentralized vs Centralized

Unlike the most widespread software models with a centralized server-client model, the decentralized data applications or DApps have a decentralized server-client models.

The centralized system controls the operation of individual units and flow of information from a single center, whereas in the decentralized system, computation is done at each node and no single node is instructing the other. 

It is this structure that helps secure users' data in a decentralized system, which is not possible in a centralized system. Since data is stored on multiple nodes, it cannot be accessed by a single node except by the one who uploaded it. It further prevents the third party applications from accessing this data without the owner's permission.

Features of DApp

In case an application is a DApp, it has an open and autonomous source. Changes can be made only by consensus. It uses the Blockchain technology to store the protocols and data cryptographically.

Tokens are generated using an algorithm that encourages contribution by the members of the network to the system and no single body holds majority tokens in the network. Also, the cryptographic tokens are used for rewarding the access of the application.

Why DApps?

One of the key factors why DApps have an edge over the other applications is that their essential components are distributed, which improves the fault tolerance and makes it almost impossible to attack the network. These apps also ensure reliable, fast and secure applications to enhance the experience of the customers. New sources like IoT and social media provide increased volume and velocity of data, which helps the Blockchain and the DApps in providing a fast, efficient and affordable way of processing and storing huge data. The feature of decentralization also provides a barrier to the collusion, which further prevents the exploitation of people at the hands of the governments and the corporations.

DApps are also offering novel ways to process the transactions easily. They help in economizing the digital resources, thus providing ways to monetize content and digital assets, which was previously difficult. These apps provide multiple ways to distribute tokens, like development, fund-raising and mining. The feature of multiplicity offers more flexibility and opportunity compared to other systems.

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In current times, if there's a crisis capable of standing neck-to-neck alongside global warming, it is possibly data security. Contrary to our belief, our data is not as protected as we may prefer it to be. With the amount of our personal, private and sensitive information being stored and transmitted online, security and privacy have become an issue of concern. Data has very easily become one of the most valuable resources which is why it is a prime target for the cyber-criminals. 

Blockchain for Data Security

In this situation of crisis, Blockchain is the rising solution for data security. It is a major technological breakthrough that helps in securing the network for data storage. To ensure the safety of data, Blockchain's feature of decentralization comes in play. 

Data - Broken and Distributed

Decentralization means distribution of powers and function from the central unit to other units. To execute this, Blockchain can be used to break up data and distribute it across a chain of computers making it easily accessible. The data is encrypted and can only be accessed using the hash key. Distributing the files means that there is no single point of weakness vulnerable to security breaches. The file is scattered across the network in a way that all the files are available even if a part of the network is down. Since the data is broken in parts and exists on multiple networks, it ensures that nobody can read or tamper with other's sensitive information.

A cryptographic signature of the document or file on Blockchain can also be saved. This eliminates the need to save the entire file on Blockchain as well as makes sure that it is untampered.

Why is Blockchain useful?

There are a few benefits that slide the tables in the favour of Blockchain storage. The peer to peer networks can make the speed of downloading very fast. The data is distributed all over the world, so it is highly available in need. No one can access it except the one who uploads it. Data storage can be extremely cheap as compared to other storages and you can also rent out your free space to earn money. Most importantly, the immutable nature of Blockchain records implies that you can confirm if a file is accurate and unaltered.

Concluding...

Unless we’ve been living under a rock, we are sure to have come across the words Blockchain and Bitcoin. Contrary to the popular assumption, the two are not the same. While Bitcoin is a cryptocurrency, Blockchain is a technology that is digitized and decentralized. It acts as a public-ledger for all cryptocurrency transactions.

What is Cryptocurrency?

Bitcoin and other cryptocurrencies were launched to simplify the online transactions by getting rid of third-party payment processing intermediaries. These use encryption techniques to regulate the generation of units of currency and to verify the transfer of funds. These digital currencies are decentralized and cannot be seen by anyone, which is why no institution or bank controls them. In fact, the use of cryptocurrency makes trading online anonymous, quick and hassle free from the regulatory and exchange bodies. It introduced a kind of flexibility in transactions that had hitherto been unheard of.

What is Blockchain?

On the other hand, a Blockchain is a ledger that allows its users to maintain immutable or unchangeable records distributed across a network. Blockchain has been used since long to track inventory and the movement of deliveries in a better manner or to settle payments quickly. Every transaction that occurs can be traced back to its origin, further allowing the Blockchain data high resistance to fraudulent activities like identity theft, double spending fraud or any other unauthorized alteration of transaction activity.

Extended use of Blockchain

The use of Blockchain is not only limited to cryptocurrencies, but has also extended to various other fields including healthcare, logistics, finance, information and technology and so much more. Every day, researchers are coming up with new and unexplored uses of this technology that can transform the businesses and the way of living. In fact, the first Blockchain casino has just been launched, and Walmart is using this technology to reduce food-tracing processes from 6 days to just a few seconds. The coming of Blockchain will introduce swift information verification, easy and faster transactions and transparency as well as security in the network.

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