What is Blockchain Technology?

What is Blockchain Technology?

Blockchain is a shared, immutable ledger for recording transactions, tracking assets, and building trust. Find out why companies around the world are embracing it. Definition of blockchain: Blockchain is a shared and immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (house, car, money, land) or intangible (intellectual property, patents, copyright, and brand image). Blockchain development network makes it possible to track and exchange practically anything that has a certain value, reducing risks and reducing costs for all parties involved.

Why blockchain matters: Businesses are information dependent. The faster they receive them, and the more precise they are, the better. Blockchain is ideal for disseminating this information because it provides immediate, shared and fully transparent information stored in an immutable ledger to which only authorized members of the network have access. A blockchain network can track orders, payments, accounts, production, and more. Because members share a single view, they can see all the details of a transaction from end to end, which builds their confidence and generates new efficiencies and opportunities.

Distributed ledger technology

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

Immutable records

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

Smart contracts

To speed up transactions, a set of rules – called a smart contract – are stored on the blockchain and executed automatically. A smart contract can set the terms for corporate bond transfers, including the travel insurance terms to pay and crypto projects etc.

What needs to change: Operations teams often spend too much time maintaining duplicate accounts and performing third-party validations. Archiving systems can be vulnerable to fraud and cyber-attacks. Limited transparency can slow down data verification. With the advent of IoT, transaction volumes have exploded. All of this slows down business, drains the bottom line – and forces us to find an alternative. Adopt blockchain.

Increased confidence

With blockchain, as a member of a reserved network, you can rest assured that you will receive accurate and up-to-date data, and that your confidential blockchain records will only be shared with network members to whom you have specifically authorized.

Reinforced security

Consensus on the accuracy of data is required from all network members, and all validated transactions are immutable as they are permanently recorded. No one, not even a system administrator, can delete a transaction. With a distributed ledger shared among network members, you no longer waste time reconciling accounting data. In addition, to speed up transactions, a set of rules – called a smart contract – can be stored on the blockchain and executed automatically.

These operations show the movement of an asset that can be tangible (a product) or non-tangible (intellectual). The data block can record any information you want: who, what, when, where, how much, and even the condition – such as the temperature of a load of food. These blocks form a chain of data as an asset moves from place to place or changes ownership. The blocks confirm the exact time and sequence of transactions; they are securely linked together to prevent one of them from being modified or a block being inserted between two existing blocks.

The food industry is just one of many sectors transformed by blockchain technology. Find out how it can track when, where and how food was grown, picked, shipped and processed, while protecting the data of network participants. Blockchain creates trust because it represents a shared record of truth. Data that everyone can believe will help fuel other new technologies that will dramatically increase efficiency, transparency and trust.

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