Where Does Blockchain Work?
Ever wondered where this blockchain technology works? Let's take one of the most successful blockchain applications, i.e., Bitcoin Blockchain, to see how it worked well.
Shared Beneficial Ownership
Bitcoin Blockchain is owned by the public, striving to build a decentralised financial system where trust is built in a democratic fashion. While Bitcoin was initiated by smart hackers, it was scaled by the tech community and eventually became mainstream, because it seemed to help the whole world and everyone had an equal opportunity to build their businesses around it (like all miners, bitcoin exchanges, etc). Wikipedia, Linux and several other open and crowd-sourced platforms have scaled in a similar fashion.
Independent Mining Achieves Trust
Blockchain does not create trust inherently. Several nodes independently validating all transactions, for some incentive, build trust in a Blockchain.The reason that Bitcoin transactions are so trustworthy is because the Blockchain app has enough independent miners all over the world carrying out mining activities in great numbers.
Bitcoin is truly decentralised. There is no central point of failure. There is no dependence on 1 person, 1 node, 1 company, 1 Ceo, 1 nation, or 1 leader.
No Contract Among Transacting Parties
While doing a Bitcoin transfer, payee and payer do not need to know each other. They do not need to have a legal agreement between them defining terms and conditions of their transaction.
Some Other Factors:
- There are other factors that need consideration, including, multiple parties executing the transactions, transparency of transactions acceptable to all parties, public or private blockchain, etc.
- If you can see several/all of the above factors in your Blockchain use case, there is a higher probability that it can work.