5 Main Principles of Blockchain technology
By: Sophia Casey
Tags: Blockchain Startup, Blockchain, Blockchain Technology, Blockchain Application, Blockchain Development

5 Main Principles of Blockchain technology

Blockchain technology doesn’t need any introduction today. A term that was once alien has now received accolades from people across the globe. Every company and investor is talking about this technology. Blockchain started its journey as an underlying technology for Bitcoin exchange, and over the years, it has garnered so much attention. From students to working professionals, everyone is speaking about Blockchain; so what makes Blockchain so alluring, for this, you need to know about the principles of Blockchain technology.

5 principles of blockchain technology:

1. Peer-to-peer network- The first principle is that Blockchain works on peer-to-peer interaction. It means that the interested parties directly interact with each other via a Blockchain platform.

2. No third-party- Taking a cue from the above-mentioned point, we want to discuss the second principle of Blockchain, and that is no third-party investment. It means that two parties directly connect with each other without depending on a third party for validation and verification. With lesser third-party involvement, it becomes easier for the buyer and seller to interact and execute transactions without any delay.

3. Time-stamping- The next important feature that Blockchain brings forth is time-stamping. Any information that gets an entry in the DLT is time-stamped. With this, it becomes easier to track and trace the information. One can easily track the data or information. This has become a helpful tool for companies to track and trace information. Moreover, each information or data is stored as a block, and one block is connected with others in a sequence, any removal of the block will become visible to the people in the network. Thus it helps in finding out if there has been any data alteration.

4. Decentralization- One of the noticeable working features of Blockchain is that it is a decentralized technology. It means that the information is spread across the network, rather than it being stored centrally. Hence, it becomes easy to track and trace the information. This becomes helpful for companies and even individuals.

5. Cost-effective solution- You would agree to the fact that the conventional supply chain system involves too many intermediaries, and because of this, there are time delays, and it also enhances the cost. But with the intervention of Blockchain, we can cut down the participation of intermediaries thereby lowering the cost.

Also, all the information on the DLT is encrypted cryptographically, thus making it difficult for anyone to alter the data. With all the working principles of Blockchain, it becomes an infallible technology that is free from attacks and data threats. Because of it, Blockchain has become one of the leading technologies for data exchange, and thus many companies are investing in blockchain.

Takeaways-

Companies are going to hire Blockchain experts and Blockchain professionals for this task, and those who have Blockchain certification have all the possibilities of exploring a new set of opportunities and better professional growth.