Blockchain works on peer to peer network where a distributed ledger shared with users is used to record the transactions. In order to add a transaction block each & every entry is validated by majority of nominated users which were selected by consensus algorithms.
The use of public key cryptography on recoding transactional blocks, verifying user’s identity with digital signatures and checking integrity of data by verifying hash digest provides high security in Blockchain based apps that have never been used before on wide scale.
Unique characteristics of blockchain enable institutions to operate a lot quicker and in a cheaper way, with a far lower error rate, less resulting risks, elimination of intermediaries, lower capital requirement along with less vulnerability to cyber attacks.
The Crypto currency is a new approach where the authorization and monitoring of transactions are recorded on a shared ledger among its users and establishes distributed trust with consensus protocols.
Blockchain is a new method to save data which can be used to encrypt the information, check the integrity of data and verify user’s identity. These features when packed together brings tons of real life usage for blockchain applications.
Smart Contracts are designed to eliminate the need of intermediaries that are responsible for enforcing the participators to honour terms of contracts. Thus, the cost of intermediaries is eliminated and the contracts run as an automated system.
Automation of contracts implementation for financial instruments, legal contracts, lending asset and other services.
Introduction of crypto currency as a replacement to fiat currencies and smart contracts to replace conventional futures, options contract in the financial markets.
Encryption algorithms, digital signatures, hashing digests and consensus algorithms are the best features of blockchain which are still evolving.