Blockchain technology is swiftly growing and interfering with several areas of the finance world, specifically the financial services sector. This technology is a secure, decentralized database that keeps track of every single digital transaction that takes place in the network, without the need of a third-party source monitoring it. The way information is recorded on the ledger system makes it extremely difficult for hackers to alter or corrupt. Blockchain technology is also a type of Distributed Ledger Technology (DLT) that guarantees transactional data security through cryptographic techniques. Essentially, it’s a digital public ledger that enables secure sharing within a decentralized and distributed structure.
The core components behind a blockchain network are the interconnected computers also referred to as nodes, blocks, and chains. A single chain holds several blocks of data, and each block holds millions of digital transaction records. All data and records are then permanently stored on the nodes. During this time the linked nodes will interminably exchange the freshest information and transactions with each other. Also, once a block is full, it will close and automatically link to the previous filled block. Together, these components form a chain of data, known as a blockchain.
Blockchain technology has the potential to transform the field of finance but there are drawbacks. The top benefits of using the digital ledger system are increased trust, reliable traceability, advanced security, and the disintermediation factor. The downside to this technology is the limited storage space, high implementation costs, scalability issues, and the extreme use of energy resources. As with all new technologies there are always challenges, however, blockchain technology is still adapting and growing, and consumers should expect to see more of this versatile technology in the future.
At Intrinio, we’re always innovating and engineering new ideas and solutions, and we’re focused on increasing the number of blockchain companies we can potentially work with. We look forward to collaborating with this unique technology and the blockchain networks that are embracing it, such as Chainlink, FTX, and Binance Coin. Intrinio is a leading data provider that offers premium data, modern technology and tools, and global customer support. Our team of financial experts are always ready to assist and make finding secure, authentic data easy. For more information on our cost efficient financial data packages please visit intrinio.com or request a consultation today.