Advantages of blockchain

We have all witnessed the boom that is taking place with all types of projects and technologies associated with blockchain or chain of blocks.

Cryptocurrencies, NFTs, smart contracts or decentralized applications (Dapps) are just some of the terms that appear in all types of media.

But what advantages and benefits does this new technology provide compared to the existing one?

In this article we have made a list of the most relevant advantages of blockchain and what benefits it provides compared to other current technologies.

Below we show you the most notable advantages of blockchain technology. Discover why it is the present and the future and the reason why it will revolutionize many sectors.

Blockchain technology makes use of decentralized networks or P2P networks ( Peer-to-Peer ) unlike many current systems that use the centralized model where a server from an institution is in charge of managing and manipulating the information.

Decentralized networks allow the elimination of large institutions, for example, financial institutions, and allow the network participants themselves to manage finances.

From this term are born the concepts of decentralized finance, decentralized applications, decentralized autonomous organizations or the decentralized purchase of properties through smart contracts .

Another very important point is transparency. All information and contracts are located on the blockchain network and everyone can access said information.

Smart contracts allow these contracts to never be broken. They are stored within the blockchain and whenever what was agreed happens, the contract will perform the action.

In this way neither party can break the smart contract , ensuring their immutability and allowing them to always be fulfilled.

Thanks to encryption systems and block architecture, transactions are completely secure, being recorded in a network of millions of nodes that is almost impossible to alter.

This technology makes the use of the blockchain very secure and can completely replace the centralized networks that we have today such as banks or technology companies such as Google or Facebook.

As we have seen, a decentralized system does not need a central server to manage operations. This results in a saving in response time since no central node has to check and send the request.

This also happens when there is a transaction within the blockchain. No third-party verification is necessary, considerably increasing transaction and verification speed.

Many projects associated with the blockchain have a lower cost since they do not require paying for third-party services for their functionality. As it is a network of nodes distributed among all participants, the minimum cost will be to add the necessary data within the blockchain itself.

As we mentioned before, information is stored in a large number of different nodes. If any of the nodes crashes, the data is not lost as it continues to be stored on tens of thousands of different nodes.

This makes a big difference with centralized systems, since if there is a problem with the main computer then the stored information is compromised and may be lost.