Why companies are looking to adopt Blockchain Technology?
Now that we’ve gone through some key Blockchain concepts, we should discuss why are companies looking to adopt this technology in the first place.
When we analyze the benefits of blockchain we realized why this is trending towards training nowadays in many IT companies around the world. Since blockchain is no single point of control.
It cannot be brought down with a potentially limitless number of nodes that can be added.
One faulty or corrupt node can be overridden and will not affect the network. The network is immutable since every block has an associated hash, which is unique for that particular block and does not change. Blockchain networks are virtually incorruptible since they are quite 51% of the nodes to agree on a certain transaction for it to be consider valid and put on a blockchain.
Consider the example of Bitcoin where you have thousands upon thousands of North currently present in the network, a single malicious node or hacker will be overwritten by the rest of the network.
Now you might be considering the scenario of what if a hacker or even hackers managed to infiltrate at least 51% of the network nodes. In that case, they would require a staggering amount of computation power and electricity equivalent to the computational power of several supercomputers which is not possible and even if it was the cost that they will incur by buying several supercomputers and then paying for the electricity and maintenance will far outweigh the potential benefits that they might be able in the blockchain. You don’t have to trust a third party when your money in transactions is more direct.
Banks are the traditional way of sending money each bank keeps its records in its lid in the ledger which is private only to that Bank. A potential hacker can come in and disrupt the system hence you might see various headlines in the news stating that such a bank that such-and-such Bank has lost billions of dollars due to some hackers hacking into the system and swindling people out of their life savings by employing blockchain.
We overcome this problem since anyone can come in and verify the transactions on the blockchain network. This is basically what we mean when we say that blockchains decentralizes blockchain networks in cents. Blockchain networks incentivize honesty.
The miners in the blockchain network rewards every time they approve honest transactions, the simplest example to think of it as “Bitcoin mining companies pay millions of dollars for cybersecurity and a lot of problems related to that resolves by adopting the blockchain technology, by saving cost and the time to produce and hire companies that provide cybersecurity.
If you’ve understood why this technology is more and more used nowadays and some of the concepts associated with it.