Sony Launches Soneium Blockchain, Promises Cheaper Transactions

Blockchain is the technology that underpins many modern digital innovations, and its success relies on a few fundamental principles that ensure security, transparency, and efficiency. The three main principles that underlie blockchain are decentralization, transparency, and immutability. Each of these principles plays a key role in shaping the unique characteristics of blockchain, and a deeper understanding of them will provide a clearer picture of how the technology works. Here is an explanation of the three principles:

1. Principle of Decentralization

Before the advent of technologies like Bitcoin and Bittorrent, digital systems were largely centralized. This means that all data and power is controlled by a single entity that has full access to the information and processes running within the system. The most common example of a centralized system is a bank. In a traditional banking system, the bank serves as the sole entity that has the authority to hold customer money, process transactions, and allow customers to withdraw or spend their money.

In the context of decentralization, blockchain eliminates the need for this centralized entity. No single entity has complete control over the blockchain network. Instead, power and control are distributed among all participants in the network. Each participant, or node, has a complete copy of the entire blockchain and plays a role in the process of validating transactions and creating new blocks. Thus, there is no single point of failure that can be exploited to corrupt or take over the network.

2. Principle of Transparency

Transparency is one of the most misunderstood concepts in the context of blockchain. Many people think that blockchain is either completely private or completely transparent. In fact, blockchain offers a unique combination of both of these concepts through the use of advanced cryptography. In blockchain, user identities are hidden using sophisticated cryptographic techniques, so that real identities are never directly revealed. Each user is represented by a public address, which is a unique string of alphanumeric characters.

These addresses are used to track and record transactions on the blockchain without revealing the true identity of the owner. For example, when someone tries to view the transaction history on the blockchain, they will not see the names of the people involved, but only a string of letters and numbers that represent the public addresses of each party. This ensures that even though all transactions are visible to anyone with access to the blockchain, user privacy is maintained.

3. Principle of Immutability

Immutability is the principle that ensures that data recorded on the blockchain cannot be changed, deleted, or tampered with. Once a block containing transactions or data is added to the blockchain, it becomes a permanent part of the chain, and changing the data in it is extremely difficult, if not impossible.

This immutability principle is very important in maintaining the integrity and reliability of the blockchain. In the world of finance and business, there are often cases of embezzlement of funds or data manipulation by certain parties. With blockchain, this risk can be minimized because data that has entered the system cannot be changed without being detected by the entire network. This makes blockchain a very useful tool in creating reliable and transparent records.