Blockchain Technology

Blockchain Technology :

✅Blockchain is a distributed digital ledger technology that records transactions in an immutable and secure way using cryptography and decentralization.

Key Features:

✅ Decentralized : Records are stored across a peer-to-peer network rather than a central authority.
✅ Transparent : Participants can view and verify all transactions on the blockchain.
✅ Immutable : Transactions once recorded cannot be altered, enhancing security.
✅ Cryptographically secured : Encryption mechanisms like digital signatures secure identities and prevent fraud.
✅ Consensus-driven : Participants must agree before transactions are approved and recorded.
✅ Automated through smart contracts : Terms are automatically executed when conditions are met.

Benefits:

✅ Enhanced security : Harder for hackers to manipulate due to decentralization.
✅ Reduced costs : Removes intermediaries, overhead costs.
✅ Faster transactions : Settlement times reduced from days to minutes.
✅ Trust and transparency : All participants have access to the same records.
✅ New opportunities : Platform for innovation across industries.

Challenges:

✅ Scalability issues : Transaction speed and volume limitations exist. Ethereum processes 15 transactions per second.
✅ Interoperability : Networks tend to be walled gardens limiting cross-chain transactions.
✅ Lack of regulations : Uncertainty for enterprises regarding compliance and legal standing.
✅ Energy consumption : Bitcoin mining uses over 90 terawatt-hours per year.

✅ Role of policymakers: Develop blockchain-friendly regulations, promote pilots and R&D, upskill workforce.
✅Significance: Blockchain has potential to revolutionize digital transactions, contracts, records and more.