What is one key feature of blockchain technology?

One key feature of blockchain technology is the immutability of transaction records. This characteristic means that once a transaction has been recorded on the blockchain, it cannot be altered or deleted. This provides a high level of security and trust because it ensures that historical data remains unchanged and transparent, allowing all participants in the network to verify and audit the transaction history.

Immutability is achieved through cryptographic hashing and consensus mechanisms used in blockchain networks, which help protect against tampering and fraud. This feature is fundamental to the integrity and reliability of blockchain, making it particularly beneficial for applications such as financial services, supply chain management, and any scenario that requires a verifiable audit trail.

In contrast, centralized data management implies a single point of control and can lead to vulnerabilities such as data breaches, while increased transaction fees might denote inefficiencies that are contrary to the benefits of blockchain. The use of proprietary algorithms does not define blockchain; instead, many blockchains utilize open-source protocols that enable collaborative development and transparency.