A blockchain means a distributed database shared on the nodes of any computer network. It stores electronic data in digital formats. The blockchain is known for its significant role in cryptocurrency systems like Bitcoin, maintaining a decentralized and secure record of transactions. The innovation that revolves around it guarantees the security and the fidelity of the data records and invokes trust without the aid of a third party.
Kavan Choksi UAE – How are blockchains accurate
Kavan Choksi UAE is an esteemed entrepreneur and expert in business, technology, and photography. According to him, the transactions on blockchains are approved by thousands of computers under a single network. This eliminates any sort of human error as none of them are involved in the transactional verification process.
Blockchain is accurate
The records are accurate as there are no mistakes. For instance, in the case of Bitcoin, even if one computer in this network makes a mistake, it has to be the same for at least 51% of the remaining computers as well – this is a rare possibility as the size of the Bitcoin network is extensive and huge.
Reductions in the cost
Consumers pay the bank for verifying the transaction or go to the notary to sign a document. The biggest advantage of a blockchain is it does not need third-party verification and its associated costs.
For instance, businesses owners incur a nominal fee if they accept credit card payments. This is due to the fact that payment processing companies and banks need to process the transaction. Cryptocurrency like Bitcoin is not governed by any central authority and does not have huge fees. The transaction fees are very limited.
Blockchain never stores information on any centralized location. The blockchain is copied, and it spreads across the network of computers. Whenever a new block is added to the chain, every computer included in the network updates this blockchain to reflect this chain. This makes blockchain very hard to tamper with as one single piece of information is copied across the whole network. It is very hard for someone to compromise this data.
Any transaction placed through a central authority takes some days to settle. For instance, if you deposit a cheque in the bank on Friday, you will find the funds deposited into your account on Monday morning. Financial institutions work during business hours, generally five days a week. However, blockchains work 24/7 all year round. Transactions are completed in a small amount of time, less than 10 minutes, and considered secure just after some hours. As a result of the above, cross-border trades are highly benefitted. If a conventional currency is used, transactions take a long time because of time zone differences; all the patties should confirm payment processing.
According to Kavan Choksi UAE, several blockchain networks also work as public databases. This means anyone with an Internet connection can look at the list of the network’s transaction history. Users can get details about transactions, but they cannot get information about the users that have made them. Blockchains are safe, and this is why they are popular in the field of cryptocurrency today.