The Common Design-Features of Blockchain Technology

In the previous article, we introduced the trending technology of Blockchain. Like any other technology or computing field, design is vital. The same is the case for blockchain.

The uniqueness of this technology lies in some core features. These features are important, for they are key to making the technology superior in different aspects. The features come in handy in the verification of transactions, recording, and storage of the blocks.

The blockchain-based design features are handy in dispute resolution. The fact that there are many of these features shows that the technology is wide and guarantees that the technology has the foundation to cater to users' needs. The following are the major features:

Settlement Verification

This feature ensures as peers in the network (parties) confirm their details, the blockchain verifies the ownership of the assets. This helps to verify the pre-transaction ownership of the asset in exchange. The essence of this core feature is to assure the settlement of assets after the transaction is completed.

Permanent Timestamp

Transparency is one essential area in any transaction. One of these aspects is time. When a block is added or created into the chain. The block is ordered accurately and it is giving a permanent timestamp. The timestamp is useful for timing activities in the blockchain. This is useful for future reference and helps to achieve total transparency in the technology.

Transaction Confirmation

Validity of transactions is essential to ensure there is no forgery. Moreover, it ensures the transaction taking place are done perfectly. For this, there is a need for confirmation on all transactions taking place. This introduces a design feature regarded as transaction confirmation. This is a protocol that requires the peers to confirm the transaction before posting. This avoids any malicious activities/ unverified transactions.

Smart contract Automation

This is a design of blockchain that allows the blockchain ledgers to implement smart contracts. The contracts run automatically on a given set of requirements. This is useful to issue and assign rights to blockchain technology tokens. For example, if a user wants to trigger one event after another one. This can be something like "if y event happens, then trigger x". This design feature is not an inherent property of blockchain.

5 Major Characteristics of Blockchain Technology

When looking at the design features of this decentralized ledger, it's almost impossible not to look at its characteristics. The difference between design features and characteristics of blockchain is that design features are what makes the technology unique. Whereas, characteristics simply define the general attributes of the technology.

For example, blockchain has a set of standard rules. This is the case for almost every technology out there. Thus, the characteristics need not to be unique. Here are the five common characteristics:

1. Distributed – There is no single central authority in the blockchain. All the users can see and access the system. They can access all the transactions in the ledger without having a trusted third party. Thus, peers communicate directly across the network without a central node.

2. Standardized Rules – This technology of blocks is guided by some sets of protocols. These rules are applicable in every transaction. It's difficult to alter or delete the information in any block. This applies to the concept of immutability, it's only in exceptional cases that the information can be modified.

3. Security – In the article on What is Blockchain Technology we discussed essential technologies in use. One of this technology is cryptography keys. Through, the public and private keys, the user's information is secure within the blockchain. This characterizes the technology to have optimum security.

4. Privacy – This is one of the best modifications in the decentralized ledger. The assurance that parties can make transactions without having to show their real identity. The concept of anonymity is evident here.

5. Auditability – Verification and tracing of information from various blocks is possible. Through the timestamps on every transaction, auditing becomes easier. This makes this trending Tech to assure transparency. To add to this fact, the chronological order makes it impossible to reverse the data and information.

Conclusion

In the same way, every technology has a set of features to define its unique attributes. The same is the case for the Blockchain Technology. The above design features make the technology to operate the way it does. These design features are the building blocks. Itis good to know them for you to understand how the Blockchain technology operates. Next, we look at the types of Blockchain Networks.