Blockchain

Blockchain defined: Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.

Why blockchain is important: Business runs on information. The faster it’s received and the more accurate it is, the better. Blockchain is ideal for delivering that information because it provides immediate, shared and completely transparent information stored on an immutable ledger that can be accessed only by permission network members. A blockchain network can track orders, payments, accounts, production and much more. And because members share a single view of the truth, you can see all details of a transaction end to end, giving you greater confidence, as well as new efficiencies and opportunities.

Key elements of a blockchain :

Distributed ledger technology

All network participants have access to the distributed ledger and its immutable record of transactions. With this shared ledger, transactions are recorded only once, eliminating the duplication of effort that’s typical of traditional business networks.

Immutable records

No participant can change or tamper with a transaction after it’s been recorded to the shared ledger. If a transaction record includes an error, a new transaction must be added to reverse the error, and both transactions are then visible.

Smart contracts

To speed transactions, a set of rules — called a smart contract — is stored on the blockchain and executed automatically. A smart contract can define conditions for corporate bond transfers, including terms for travel insurance to be paid and much more.

Blockchain and its Advantages -

Consider a digital ledger made up entirely of blocks. A chain is formed by connecting these blocks. Every time someone wishes to conduct a transaction and thereby contribute information to the blockchain, they must create a new block.

When a new block is formed, it is added to the end of the chain, providing an unbroken record of block transactions dating back to the first block ever created.

Unlike most data written and then overwritten by traditional digital ledgers, the benefit of such a system is that a complete record of transactions is visible to all.

Now that we’ve covered the basics let’s look at the benefits of blockchain:

The most exciting aspect of blockchain technology is that it does not require centralized control. Instead, it functions as a peer-to-peer network with no central authority.

Each node in the network is a participant, and each node has equal control over the ledger.

On the blockchain, every transaction must be authenticated and authorised by all participating nodes.

Compared to traditional systems, qualities such as security and transparency are much improved because each node has a blockchain record.

The benefits of having numerous nodes maintaining the database and not depending on a single controlling entity, cannot be underscored.

When applied to a wide range of operations, blockchain technology may help cut costs, improve security, assure greater data security, boost confidence between businesses and their customers, and automate processes that currently take weeks to complete.

Blockchain Security :

Because globalization raises the demand for service integration across domains and regions, identity management software is becoming increasingly vital. Adding a blockchain-based ID solution to your app will assist in securing its security and convince customers that they are in good hands when using it.

While this may not appear to be a major selling point today, the massive increase in data breaches, such as the Facebook breach in September 2018 that exposed 50 million user accounts, raises awareness about the critical need for ID security. Whether you have the resources to build your own blockchain-based ID security solution from the ground up or just integrate an existing blockchain ID solution like Validated ID, providing such a safe solution will undoubtedly help you stand out from the crowd.