Deep Dive: Why use blockchain?

There are a few important features which blockchain technology can bring to your product


  1. Decentralization

  2. Immutability

  3. Immortality

  4. Open Source Philosophy


These features can enable your company to build products which otherwise would be impossible, or to gain a competitive advantage. We will describe each of these facets in detail below.



Decentralization


This refers to the practice of building a system (or element of a system) controlled by a decentralized network rather than a single authority. Those who use open decentralized systems rely on publicly auditable code to set the rules of how everyone uses the system. The system then operates itself according to those rules.


Advantages of decentralization include

  • Massive redundancy for your data. Depending on the level of decentralization, your data may become practically impossible to destroy.

  • By delegating certain components of your system to a decentralized network, you remove the need for your users to trust you with respect to those components. This makes adoption easier because users can trust the public system.

  • Eliminates infrastructure costs and risks related to the components of the system deployed to the public network.


Immutability


This means data can be stored in a manner which makes it practically impossible to change that data. Traditionally, data was stored in databases or in files on disk. When data is stored in these places, it can be changed. Someone can come along and decide they are going to change a 0 to a 1. In blockchains with immutability, data cannot be changed. This isn’t to say you cannot write new data, but the history of what has been written will always be the same. The president cannot change it. A country cannot change it; no one can.


Advantages of immutability include

  • Users can rest assured that the data they have recorded will never be lost.

  • Eliminates the need to trust that the entity storing data won’t change that data.


Immortality


This means that data stored on the blockchain will live practically forever. This advantage is gained by using public blockchains with widespread adoption. Examples of such chains include Cardano, Bitcoin, and Ethereum. These chains are maintained by thousands of people worldwide. Further, it takes very little computational power to run them. It only takes one person to guarantee the system is running. So long as the internet exists, there will always be some group of people running these systems. As a consequence, the data stored to blockchains is practically immortal. It cannot be changed (immutability) and the system will always exist.


Advantages of practical immortality include

  • Organizations can adopt your platform by incorporating your data without worry that your organization will stop existing. Whether your organization lives or dies, the data will live forever. This removes a major barrier to adoption for many types of solutions.

  • Eliminates infrastructure costs and risks related to the components of the system deployed to the public network.


Open Source Philosophy


The open source philosophy aligns well with the blockchain. Open source works according to the assertion that if your platform is made open, it will incentivize people to build on top of it. In doing so you turn your product into an integral part of a larger system. The overwhelming success of open source systems cannot be ignored. The most widely adopted technologies in the world are open source. These include technologies such as linux, android, the C programming language, and so much more.


Blockchain provides a previously unavailable opportunity to companies who wish to make a slice of their product, or even their business model, open.


Advantages of employing an open philosophy

  • Others are incentivized to incorporate your product or service into their own.

  • Removes the need for others to trust the open parts of your systems, since anyone can audit them at any time; further encouraging adoption.



Summary


Above we describe some of the various advantages to using a blockchain. This is not an exhaustive list. The reality is that blockchain technology is so new that the full range of use cases and advantages is not yet fully understood. Blockery is full of experts ready and able to help you explore blockchain tech, and stands by to provide the easiest, fastest, and most secure route to blockchain technological implementation. Reach out today if your company is moving along this path.


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