What Drives the Adoption of Blockchain Technology?
Blockchain is a reliable transaction register (or ledger) containing all transactions up to this very moment. It is a significant and continuously growing file comprising a list of records called blocks (or blocks of transactions). Each block in the list is linked (i.e., chained) with the previous and the next block using cryptography. Well, then, what is the difference between this and any other register? Isn’t it the same as the cloud database service? Why Blockchain? Why would a business use blockchain if they could find other cloud-based security and data transfer solutions? This article would be an excellent answer to those questions and what factors drive the adoption of blockchain technology.
To understand more about Blockchain, we need to know that Blockchain is not a single technology but more of a technique. A blockchain is an architectural concept, and there are many ways blockchains can be built, and each of the variations will have different effects on how the system operates. One of the biggest misconceptions in the blockchain space is between distributed and decentralized systems.
A distributed system is one in which the application and its architecture are distributed over a large number of machines and preferably physical locations. More simply, a distributed system is one where the system’s goal is spread out across multiple subsystems in different locations. All decentralized systems must be distributed. However, distributed systems are not necessarily decentralized. This needs to be clarified for many people. The difference has to do with location and redundancy versus control. Centralization in this context has to do with control. In a decentralized system, there is no overwhelming central stakeholder with the ability to make and enforce rules without the permission of other network users.