- Durability – Decentralized networks eliminate single points of failure as opposed to centralized systems. This distribution of risk among its nodes makes blockchains much more durable than centralized systems and is better suited to deter malicious accesses.
- Transparency – An identical copy of a blockchain is maintained by each node on the network, allowing auditing and inspecting of the data sets in real time. This level of transparency makes network activities and operations highly visible, thereby reducing the need for trust.
- Immutability – Data that is stored on a distributed public blockchain is practically immutable due to the need for validation by other nodes and traceability of changes. This allows users to operate with the highest degree of confidence that the chain of data is unaltered and accurate [2].
- Process Integrity – Distributed open source protocols are by nature executed exactly as written in the code. Users can be certain that actions described on the protocol are executed correctly and timely without the need for human intervention.
Transaction process in blockchain:
Transaction from identity A to identity B can be done by achieving an encrypted public and private key. Encryption establishes security .Privet key acts as a box where values can be stored. The box can be unlocked for anyone. The strength of the network of boxes is that one needs to know the location of the box to be able to access the content of it. The network contains almost innumerable boxes. The first step for preparing for sending any value is to hash it. Once it is hashed the owner decrypts the hash-code by using his private key.
This creates a digital fingerprint of the shipment. Next step is to send the original document along with the public key and the digital signature to the recipient. To evaluate, the recipient hash the document by using the same hashing algorithm as the sender did. The digital signature is then decrypted by the supplied public key, and lastly a comparison of the two hashing codes is executed, and if they are identical the sender is the legit owner of the document. This is how authenticity of blockchain is established.