Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
Blockchain is a P2P decentralized distributed ledger technology that makes the ledgers of any digital asset transparent and immutable and operates without involving any third party intermediaries. It is an emerging and revolutionary technology that is attracting a lot of public attention due to its ability to reduce risk and fraud in a scalable way. Now here’s the question: why is Blockchain a distributed and decentralized P2P network?
Decentralized network offers multiple advantages over the traditional centralized network, including increased reliability and privacy of the system. In addition, these networks are much easier to scale and do not face a true single point of failure. The reason the Blockchain is distributed is due to shared communication and distributed processing. Blockchain’s P2P architecture offers many advantages, such as higher security than traditional client-server networks. A distributed P2P network, combined with a majority consensus requirement, offers blockchains a relatively high degree of resistance to malicious activity.
