The blockchain is defined:
A blockchain is an immutable, shared ledger that facilitates the process of recording transactions and tracking assets within a corporate network. An asset can be tangible (house, car, money, land) or intangible (intellectual property, patent, copyright, brand image). Virtually anything of value can be tracked and transacted on the blockchain network, reducing risks and costs for everyone involved.
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Why blockchain is important:
Business runs on information. The faster grower and more accurate it is received, the better. The blockchain is ideal for providing this information as it provides instant, shared, and fully transparent information stored on an immutable ledger that only authorized members of the network can access. Because members share a single view of the truth, you can see every detail of the transaction from start to finish, giving you more confidence as well as new efficiencies and opportunities.
Key elements of blockchain
Distributed Ledger Technology
All network participants have access to the distributed ledger and its immutable transaction records for all. With this shared ledger, transactions are recorded only once, eliminating the duplication of effort of traditional enterprise networks.
Immutable profile
No participant can modify or alter a transaction after it has been recorded in the public ledger. If a transaction record has an error, a new transaction must be added to reverse the error and both transactions will then be visible.
Smart contract
To speed up transactions, a set of rules – known as smart contracts – are stored on the blockchain and automatically executed. Smart contracts can define corporate bond transfer terms, including payment terms for travel insurance, and more.
How does blockchain work?
As each transaction occurs, it is recorded as a "block" of all data
These all transactions show the movement of an asset that can be tangible (a product) or intangible (intellectual). The data block can store the information you choose:
who, what, when, where, how much and even the status – like the temperature of the food shipment.
Each block is connected to the blocks before and after
These all blocks form a chain of data as an asset moves from one place to another or ownership changes. The blocks confirm the exact time and sequence of transactions, and the blocks are securely linked to prevent a block from being modified or a block being inserted between two existing blocks.
All Transactions are locked together in an irreversible chain
A chain of blocks
Each additional block enhances the verification of the previous block and, therefore, of the entire blockchain. This makes the blockchain tamper-proof, providing the main strength of immutability. This eliminates the possibility of tampering by a malicious actor and creates a record of transactions that you and other network members can trust.
Advantages of blockchain
What you need to change
In operations, effort is often wasted by duplicate records and third-party verification. Systems of record can be vulnerable to fraud and cyberattacks. Limited visibility can slow down data validation. All of this slows down business and eats into your bottom line. Enter the blockchain.
Greater confidence
Using blockchain ensures that, as a member of a member-only network, you are receiving accurate and timely data, and that sensitive blockchain records are shared only with network members who have expressly granted access.
Is guaranteed safer
Agreement on data accuracy is required from all network members, and all verified transactions are immutable as they are permanently recorded. Transactions cannot be deleted, even by system administrators.
More efficient
Using a distributed ledger shared among members of the network eliminates the need for time-consuming reconciliation of records. And to speed up transactions, sets of rules called smart contracts can be stored on the blockchain and executed automatically.
Types of blockchain networks
Can participate in. Bitcoin for example. Disadvantages include significant computational power requirements, little or no transaction privacy, and weak security. Private blockchain network A private blockchain network, like a public blockchain network, is a decentralized, peer-to-peer network. However, one organization manages the network, controls who can participate, runs the consensus protocol, and maintains the common ledger. Depending on the use case, it can greatly enhance trust between participants. Private blockchains can run behind corporate firewalls and can be hosted locally. Approved blockchain network Companies that set up private blockchains typically set up permissioned blockchain networks. It’s important to note that public blockchain networks may also be allowed.