Blockchain in itself is beneficial for people and organizations using it. Here’s what you can expect when you add scalability further into the mix.
1. Data structures
Blockchains are already built on many enterprise networks and structures. With scalable blockchain, this expands even further, where each transaction runs on blocks and nodes. By improving the performance of elements such as throughput, finality, and confirmation time, scalable blockchains provide highly capable platforms for innumerable transactions.
2. Processing power
The more scalable a blockchain is, the more opportunities it can cater to a wider community. The performance of the blockchain won’t decrease as use cases and acceptance increase, creating a continuous cycle of growth.
Blockchain networks that scale to compete with legacy, centralized platforms have incredibly superior network settlement times and usability.
3. Autonomy
With scalable blockchain, businesses can perform their tasks and processes quickly because they have immediate access to and control over data. As such, data sharing among business organizations, employees, customers, suppliers, etc., is more straightforward.
4. Immutability
Data in a scalable blockchain is tamper-resistant because of the economic based Proof-of-Work consensus algorithm used. Any alteration of a previous transaction would make a block no longer validate, and as long as more blocks are built on top of it, the cost to rewrite a transaction exponentially grows with each block built on top of the last. In addition, shared replication, reverting prohibited alterations or deletions, routine database backups, and cryptographic signatures of all transactions, blocks, and votes are some methods used to accomplish this.
5. Transparency and auditability
Every confirmed transaction in the blockchain is timestamped and kept on the block. As a result, other nodes on the network can quickly confirm and follow the previous transaction. For instance, every transaction in Bitcoin is linked to the one before it via a hashed connection, demonstrating the auditability of the saved data.
6. Security
Better data security is an end goal of most, if not all, businesses. A globally scalable blockchain means it is secure, encouraging more entities to use it because of the reduced risk of fraud and unauthorized transactions.
Scalability is the Future of Blockchain Technology
The growth and mass usage of blockchain calls for its scalability. This scalability is crucial to how businesses and industries innovate their products and services to ensure fast transactions, data security, and transactional costs for technology users.