Blockchain technology is one of the emerging modern technologies. It has many advantages over conventional technologies. Similarly it has diverse applications in multiple fields. But the most important use of blockchain technology is development of crypto currency. This technology has some unique characteristics like decentralization and transparency. Therefore it is becoming famous and finding applications in other sectors. Let us see the unique character of this technology.
The decentralization means the dispersion or distribution of the things aside from the central body. The dispersed thing may be power, authority or money from the central main authority. Many matters of state are generally centralized means controlled by a single authority. For example financial matters of states are under the single supervision of central banks. This may lead to many disadvantages in case of hijacking, cyber attacks or system failure. The modern technology of blockchain allows decentralization of the things. For example Bitcoin designed to decentralize the money through blockchain technology.
Decentralization makes it efficient and effective when there is any system failure at any point of system of money. There are many other crypto currencies developed and all using blockchain technology for decentralization means for dispersing the money away from the central body. Although the control over the things is difficult in a decentralized process, the popularity of decentralization is increasing as it protects the privacy of people and helps them more efficiently. In centralized platforms, end users need to contact through the central body and have privacy or trust issues while in decentralized infrastructure they can contact directly and hence their privacy is protected. Bitcoin is the best example to explain the process of decentralization by using the technology of blockchain.
Blockchain provides a high degree of transparency as anyone can join the system and contact with all users. The information of the system is available to all the users and not hidden or controlled by a central body. Blockchain technology ensures transparency by decentralizing the things. In the age of modern technologies there is a need for controlling information and communication by both public and private institutions. The protection of personal data or information has become difficult in the era of modern technologies. There is a need for protecting the privacy of the public in this environment.
The modern platforms of internet and social media sites including Facebook and even Google are publically open. These platforms are affecting the people in their life, behavior and routine and not protecting their data. Because they are operating through a centralized body so they have control on the data flow and information of the public so not transparent. Blockcain technologies provide transparency to the users and they can exchange the information in the form of codes. End users can easily use the online platforms without the fear of controlling software by the central body to steal their information. The inherent transparency of blockchain technology is actually countermeasure to conventional privacy expectations. It provides transparency to the end users and they can check the history of information flow or transactions in case of money.