What is BlockChain?
BlockChain Overview
what is blockChain?
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets across business networks. Assets can be tangible assets (houses, cars, cash, land) or intangible assets (intellectual property rights, patents, copyrights, branding). Virtually anything of value can be tracked and traded on the blockchain network, reducing risk and all associated costs.
Why Blockchain Matters?
Business is information-based. The faster and more accurate we receive information, the more beneficial it is. Blockchain is the technology of choice for communicating this information. This is to instantly provide fully transparent shared information stored in an immutable ledger that can only be accessed by authorized members of the network. Blockchain networks can track orders, payments, accounts, production, and more. And members can share a single view of data to see the details of every end-to-end transaction, increasing trust and bringing new efficiencies and opportunities.
important factor
Distributed ledger technology
All network participants have access to a distributed ledger and immutable transaction record. Transactions are recorded only once through that shared ledger, eliminating redundant work that is common in traditional business networks.
immutable record
After a transaction is recorded on the shared ledger, it cannot be modified or manipulated by any participant. If the transaction record contains an error, you will need to add a new transaction to change the error and you will see both transactions.
Smart Contract
To speed up transactions, a set of rules called smart contracts are stored on the blockchain and automatically executed. You can set up smart contracts to define the terms of a bond transfer or include travel insurance payment terms.
How blockchain works
As each transaction occurs, it is recorded as a “block” of data.
Transactions represent the movement of tangible (products) or intangible (knowledge) assets. Data blocks can record selected information. Log everything from who, what, when, where, how much, to status information like food delivery temperature.
Each block and connection before and after
Blocks form a data chain as assets move to different locations or change ownership. These blocks check the exact time and order of transactions and securely link them to prevent blocks or other blocks from being inserted between two existing blocks.
Transactions are formed as blocks on an irreversible chain, the blockchain.
Each additional block strengthens the verification of the previous block and strengthens the entire blockchain. Immutability is therefore a key strength, as blockchain counterfeiting and tampering can be easily detected. It completely blocks the possibility of tampering by malicious actors and builds a transaction ledger that all network members can trust.
Advantages of blockchain
Situation that needs improvement
Operations often involve tiring tasks such as maintaining duplicate records and third-party verification. Records management systems can be vulnerable to fraud and cyberattacks. Limited transparency can also slow down data validation. With the advent of IoT, transaction volume has exploded. All of this slows down business, erodes bottom lines, and points to the need for better ways of doing business.
Increase trust
By utilizing blockchain, as a member of a membership network, you can receive accurate and timely data. We also share sensitive blockchain records only with specific network members who we have individually granted access to.
Enhanced security
All network members must agree on the accuracy of their data, and all verified transactions are permanently recorded and irreversible. No one, including system administrators, can delete transactions.
Efficiency improvement
With a distributed ledger shared among network members, no time is wasted reconciling records. To speed up transactions, a set of rules called smart contracts can be stored on the blockchain and executed automatically.
