Three Pillars of Blockchain Technology
Introduction of Three Pillars of Blockchain Technology
The so-called “three pillars” of Blockchain Technology the system are another crucial component in understanding blockchain, in addition to its description and operation. Divergent opinions exist throughout the virtual community over the number of blockchain pillars. Nine, according to some, and seven, by others. To keep things simple, we’ll focus on three, which are as follows:
- Decentralization
- Transparency
- Immutability
1. Decentralization of Three Pillars of Blockchain Technology
The true meaning of decentralization is the absence of a central entity. When we talk about decentralization in relation to blockchain, we mean that the network is autonomous because there is no central authority.
To understand decentralization and its advantages, let’s examine this example. We were used to entirely centralized services back then, before blockchain technology was launched. Take banks as an example. Your money is gathered or piled up by your bank, and you are unable to access it online or in person without going through the typical, centralized processes and procedures of the bank.
For many years, these centralized systems have been a great help to us. Everything goes wrong when a centralized system is improved or changed. In other words, anyone wishing to utilize it is instantly denied access if it is shut down.
2. Transparency of Three Pillars of Blockchain Technology
Blockchain offers a transaction record that is unchangeable. A transaction cannot be changed or tampered with after it has been recorded. By adding additional transactions, errors are fixed and a clear audit trail is produced. On the blockchain, smart contracts are used to automate tasks and enforce regulations.
In the real world, transparency is defined as having no opacity. Now, applying this idea to blockchain technology, we can say that there is exactly zero privacy in terms of transactions on the network because every transaction is public and visible to everyone.
3. Immutability of Three Pillars of Blockchain Technology
The blocks in a blockchain form a chain of data. Each block contains information about an asset (tangible or intangible), including details like who, what, when, where, and how much. These blocks are securely linked, preventing alteration or insertion of new blocks. Immutability ensures trust and reliability in the ledger.
This would be really beneficial. Just about the sheer number of money fraud schemes that may be brought to an abrupt end if people realized how much more difficult it would be to falsify business finances.
