One of the reasons for the growing popularity of cryptocurrencies is the blockchain technology, which is behind most of them. Blockchain is also called a digital register, which allows you to register transactions without intermediaries participating in them. Blockchain has five major advantages which can in the future make it a widespread technology. And not only in the world of finance, but also beyond.
The first thing that separates blockchain against the background of other systems is transparency and open source code. Thanks to the blockchain, it is incredibly difficult to change previously registered data, which makes the technology particularly reliable. Another reason for the success of the blockchain is that you do not need an intermediary in the form of a bank or organizations to make deals. Accordingly, the cost of the transactions themselves also decreases.
Also, unlike ordinary banks, where it often takes some time to conduct operations – sometimes money transfers can take up to 24 hours – everything goes much faster. Moreover, blockchain works non-stop – there are no working hours from nine to five, as in many banks. And the difference in time zones is also not able to affect the speed of the transaction. Decentralization is another serious reason to look toward the blockchain. What does it give? First, thanks to it, the system is distributed across different servers. This allows you to save on a huge data center. Secondly, the information about the blocks is scattered across different servers – this means that if it gets into the wrong hands, only a small part of the data will be compromised, instead of the entire network.
Fifth, the blockchain belongs to users who themselves decide what they want from Bitcoin – hardfork and the appearance of new cryptocurrency is a vivid confirmation of this.