What is the Reliability of Blockchain (Blockchain has high efficiency)

08/15/2023 14:17 • Crypto & Markets • 49 views

What is the reliability of blockchain? Blockchain is a technology that ensures the secure transmission of information through consensus mechanisms. In traditional computer systems, each transaction involves different processing units or inputs and outputs of data, but this method has many drawbacks. For example, if the information recorded in a ledger is not verified and provided with integrity by any node, it cannot be forwarded. Moreover, if someone falsifies specific data, it will be detected by other parties on the chain, thus affecting the stable operation of the entire system. Therefore, what exactly is the reliability of blockchain? What role does it play? Let’s take a look at this concept together.

First, we need to understand whether there are enough participants in the blockchain network to store and maintain its value. For blockchain, the most critical issue is security – because only confirmed individuals can obtain bitcoins, which means the trust level of this blockchain is very high. Therefore, the focus in the field of blockchain is on ensuring security, preventing loss, and ensuring tamper resistance. This is why attention is paid to trustworthiness and transparency, which can improve the usability and accuracy of blockchain technology. So, which method can minimize the cost of trust?

For example, one approach is Ethereum. Its development team operates in a completely decentralized manner and has always been committed to providing unparalleled services to users. Since Ethereum is an open-source project, the complexity and performance issues involved in smart contract code are reasons that cannot be solved by humans. Additionally, this protocol itself is designed based on cryptographic principles. Other cryptocurrencies can also be used as a medium of exchange, such as Tether, but since they have not been widely applied, it is difficult to determine how easily they can be implemented.

The second scenario involves using asymmetric encryption algorithms, which have an infinite level of functionality and allow people to obtain information and data from various distributed databases, bringing them closer to accessing the infrastructure of the Internet directly. The third category involves building applications within a separate network, allowing everyone to create and share their own identities across multiple servers.

Blockchain has high efficiency

According to on-site reports, at the second World Digital Asset Summit today, Vitalik Buterin, co-founder of Ethereum, gave a speech titled “The Arrival of ETH2.0 and How Blockchain Helps Solve Trust Issues in Traditional Industries.” He believes that the development of the Internet is very fast and there are many bottlenecks and challenges that need to be overcome. He said, “We see that some projects are trying to store data in distributed ledgers, but they have not formed large-scale applications.”

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What is the Reliability of Blockchain (Blockchain has high efficiency)

Blockchain has high efficiency

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