What are the main features of blockchain?

Blockchain has seven features including: decentralization, global circulation, anonymity, tamper-proof, openness and transparency, traceability, and autonomy.

·Decentralization

Decentralization is the most basic feature of blockchain, meaning that blockchain no longer relies on central processing nodes and realizes distributed recording, storage and updating of data.

Since every blockchain node must follow the same rule, which is based on cryptographic algorithm rather than trust, and each data update is subject to the approval of other users in the network, there is no need for a set of endorsements by a third-party intermediary or a trusted authority.

Although there are many blockchain projects, the only one that is completely decentralized is Bitcoin (BTC). Many projects would be ideally organized in a way similar to BTC, but the reality is somewhere between a fully decentralized organization and a traditional company.

·Global Circulation

In the process of circulation of traditional currencies, due to the control of exchange rates among the countries, people cannot freely exchange currencies, and the wealth of the world cannot circulate rapidly, conveniently and inexpensively on a global scale.

Blockchain technology creates a global network of values, allowing everyone from anywhere to transfer assets to anyone in the world without restriction, as long as they have a blockchain account denominated in such digital currencies as Bitcoin or Ethereum (ETH).

·Anonymity

Technically alone, the identity information at various block nodes do not need to be disclosed or authenticated unless otherwise required by laws and regulations, and information transmission can be carried out anonymously. The anonymity of blockchain protects users' privacy to a certain extent.

However, the anonymity of blockchain is also controversial, because it plays an important role in protecting people's transactions and privacy, and also provides an "umbrella" for some criminal activities.

·Tamper-proof

The blockchain is tamper-proof for cryptographically based hash algorithms and the feature of joint maintenance by multiple parties, meaning that once the information is authenticated and added to the blockchain, it will be stored permanently.

So we can't “modify” the books without leaving some trace, and we can only "correct" them. For example, I might transfer a sum of money to you by mistake/omission and the transaction is accepted and recorded in the blockchain ledger. In such case, the way to correct such mistake/omission is not to cancel the transfer operation and restore it to where it was before the mistaken transaction, but to make a new correctional transaction and have you to transfer the money back to me. When a new transaction is accepted by the blockchain ledger, mistake/omission is corrected, and the process of all corrections is recorded in the ledger and traceable.

·Traceability

The traceability of blockchain is closely related to its tamper-proof feature. As blockchain records the input and output of every transaction on the blockchain and all data is tamper-proof, it is easy to trace the quantitative changes in the assets and transaction activities.

·Openness and Transparency

The ledger as the records of the blockchain system should be in a state that is accessible to all participants. In order to authenticate the information recorded by the blockchain, bookkeeping participants must have access the information content and the ledger history.

However, open ledger refers to the open accessibility, not the open information itself. In the Bitcoin network, you can see the transfer records of every address, but you don't know to whom that address belongs.

·Autonomy

All nodes participating in the blockchain system follow the same consensus mechanism, which enables all nodes in the system as a whole to exchange data freely and safely in a trusted environment, changing the trust of people to the trust of the system and reducing the impact of human intervention on the system.