Understanding Blockchain Technology: 3. Characteristics of a blockchain

  1. Data is always available as long as any of the nodes are online since the full copy of the data is stored on all the full nodes causing minimal disruption
  2. Data is highly secure and immutable because the data is encrypted with strong cryptographic algorithms
  3. Location of the nodes can be distributed anywhere in the world which can make data access fast and easy
  4. All transactions in the ledger are publicly visible but still private
  5. Transactions have to be verified by all nodes
  6. No intermediaries are involved
  7. Almost zero fees are involved
  8. Smart contracts are agreed upon when setting up the blockchain and are stored in the blockchain which set the rules for verifying and accepting transactions
  9. Data is updated nearly in real-time
  10. Uses cryptography and digital signatures to prove identity, authenticity and enforce read/write access rights
  11. A blockchain is autonomous