Effective Ways In Which The Blockchain Technology Has Improved The Financial System-- The Enhancement Of Immutable Record Of Ownership

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Hello Great Minds,

I believe you are all doing great and are actively promoting steemit on x-social media.

It is another beautiful day and I feel happy to come before you all to discuss on an issue of great importance in the cryptospace.

Today, we shall be discussing about the blockchain technology and how it has improved the financial system of our world this day.

The blockchain has improved the financial system of our world in so many ways, however, we shall be discussing on how the blockchain provides immutable record of ownership.

Please stay tuned.

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IMMUTABLE RECORD OF OWNERSHIP

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An immutable record of ownership can be explained to be a database that maintains an unchangeable and secure record of who iwnsya financial assets.

The concept of an immutable record of ownership is most often related to the blockchain technology which helps to provide a tamper-proof and decentralized way to record ownership and transaction.

The immutable nature of the blockchain ensures that once an ownership record is established, it cannot be deleted, altered nor tampered with.

This thus enhances accountability, trust and transparency within the financial system by preventing fraudulent activities, enabling real-time auditing and reducing the risk of errors.

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HOW THE BLOCKCHAIN IMPROVES IMMUTABLE RECORD OF OWNERSHIP

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The blockchain technology plays a very crucial role in enhancing the immutable record of ownership within the financial system.

Explained below are some ways in which the blockchain improves an immutable record of ownership.

• ENHANCED SECURITY THROUGH CRYPTOGRAPHY:

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The blockchain makes use of cryptographic techniques to secure data, guaranteeing that only authorized participants can access, modify and view transactions.

Hashing, public and private keys pair, digital signatures are all used for users authentication and transaction validation.

This cryptographic layer helps to increase the level of security to ownership records, making it difficult for malicious individuals to manipulate the information.

• DECENTRALIZATION AND CONSENSUS MECHANISM:

The decentralized nature of the blockchain technology eliminates the need of central authority to validate transactions, rather validation of transaction is done through consensus mechanism such as proof of stake and proof of work.

These mechanism often requires it's participants to stake lots of tokens or make use of computational power for the verification of transaction, thus making it computational expensive to manipulate historical records.

• TRANSPARENCY AND AUDIBILITY :

The blockchain technology shows it's transparent nature by allowing all it's participants to complete transaction history.

This transparency of the blockchain helps to improve credibility of ownership record as any manipulation can be easily identified and corrected.

Also, auditors are allowed to partake in the verification of ownership record without the need to access sensitive information in the blockchain.

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CONCLUSION

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The blockchain technology is being accepted by various sectors of the world due to the various advancement it offers.

We have considered how the blockchain helps to improve the immutability record of ownership.