05 outstanding features of Blockchain technology
In the 4.0 era with digitizing in all industries, Blockchain is considered as an optimal platform in digitizing processes based on outstanding features. In the previous series of Blockchain technology, we had introduced this technology in the first place. In this article, Lina Network offers readers about 05 outstanding features of Blockchain technology.
Before learn more about the security of Blockchain, let’s refer to the example below:
In the monarchy, the king is the person that owned the supreme authority. At the same time, the king is also the one who decentralizes the subordinates and has a specialized role. The question is, once an enemy wants to overthrow a dynasty, who should they overthrow?
Does the enemy need to destroy the subordinates or just overthrow and destroy only the king – who holds all the power of the country?
Until now, the traditional Internet network operated like a feudal model, meaning that all authority was concentrated in the hands of one king. In other words, the server will represent the King of the entire network responsible for storing information and distributing authority to other computers. If a hacker wants to take information of 1 million people, he only needs to take over the server with the highest authority, not the information of each computer.
The birth of Blockchain has solved the vulnerability of data storage and management mechanisms on the current Internet platform thanking to the method of information security based on consensus mechanism.
Theoretically, Blockchain is defined as a system that operates on a democratic governance model.
In the Blockchain network, there will be no single server but thousands of servers with equal authority and once a problem occurs or information is changed, it must be approved by all Blockchain. This is called the Consensus algorithm.
Supposedly, there is a hacker intended to attack the system, the hacker must attack and take over 51% of the right to change or replace information on the Blockchain. This is called a “51% Attack”. In fact, gaining 51% consensus to attack the Blockchain network is extremely expensive and requires an tremendously powerful computer processing system, so this is quite hard to occur.
The second prominent feature of Blockchain technology is Linking.
Blockchain stands out from the normal Internet in its democracy.
In a transaction, this usually not only appears as an exchange between the seller and the buyer, but also appears as a third party, which is the banking system because of legal constraints between the buyers and sellers.
Blockchain’s linking is the most outstanding feature in the Peer-to-Peer network (P2P).
The peer-to-peer distributed network P2P does not have a central bank control like a regular transaction, however, based on the trust of each block. This raises the issue of each block having to have a chain of encrypted information when performing a transaction. As well as the absence of a centralized transaction control center, the processing speed of information or the cost of money transfer in two places thousands of kilometers apart will be much simpler.
Blockchain is an infinite chain of blocks connected and linked together, information is stored one block after another preceding it.
To clearly demonstrate the immutability we would like to show an example. When queuing up to get the medical checkup at the hospital, to ensure fairness, the holder of number 5 of the health check always knows that there are 4 people previously in line, and that he is holding the 5th card. However, the implementation of fraudulent votes to get the number on top is inevitable.
The Blockchain will not have permission to let this fraud happen.
Immutability is a remarkable feature and can be optimally exploited on Blockchain. With this feature, network users cannot delete or change the information recorded on the system, or it will be very difficult to do.
As a user, have you ever shopped online but the quality of the product completely does not match the reviews on the internet? Have you ever doubted the reliability of product reviews from other users?
In a 2016 Fan & Fuel survey, 97% of consumers responded that product reviews influence their buying decisions. The power of product reviews not only influences customers’ buying decisions but also increases brand reputation.
Due to the immutability of Blockchain, all information that is stored on the entire Blockchain network cannot be deleted or replaced. Therefore, any changes can be traced back to the Blockchain to verify if an error occurs.
From a case study about writing non-transparent reviews and possibly being falsified by businesses or removing negative reviews at any time, applying the transparency of Blockchain technology to writing product reviews helps to win consumer trust and encourages consumers to have direct dialogue with brands.
All information to be stored on Blockchain must be approved by nodes according to standard rules, and each field will have its own rules.
In the medical field, the EHR electronic record must be modeled by consensus from all hospitals globally. However, the reality is that blockchain technology is still in its infancy and has not been standardized synchronously. Therefore, in order to move towards practical implementation in medicine and healthcare, the Blockchain-based EHR system faces standardization challenges. The standard of EHR on the Blockchain platform is certified and will be verified from international standardization bodies.
Lina Network provides solutions to solve practical problems for businesses based on Blockchain application. Let’s update our latest blog post about blockchain series.