What is Blockchain Technology?
May 8, 2021
Biswajit Sarkar - IP Law Firm India
Post time: 6:10 am
A Blockchain is a digital ledger that tracks assets in a business network. An asset can be tangible (cash, land, car) or intangible (patent, copyright, trademark). On a blockchain network, it becomes possible to track and trade any asset in a risk-free and cost-saving method.
Importance of Blockchain
Accurate information is crucial to run a business. Blockchain is ideal for sending immediate and transparent information to members with permission. Members, as a result, can track all the transactions giving greater confidence.
How does Blockchain work?
1. As a transaction takes place it records as a “block” of data. This block can record the data of your choice. For instance, in the food industry, the blockchain can track the condition of a food shipment.
2. The block of data connects to the block before and after it and forms a chain as the asset moves from one end to the other. Each block records the exact time and sequence of a transaction.
3, Each transaction is locked together in an irreversible chain. This makes the blockchain rigid and removes any possibility of tampering.
Types of Blockchain networks
1. Public blockchain network: Anyone can be a part of this network, much like Bitcoin. On account of its open nature, one can write, audit, and read the ongoing activities of the network. Each member of a public blockchain network can see the ledger and take part in the consensus process. Thus, maintaining transparency.
2.Private blockchain network: One organization governs the shared ledger and keeps a track of the members allowed to take part. It is important for the internal networking system of a company and safeguards privacy due to competition or other reasons.
3.Permissioned blockchain network: This blockchain network provides an extra level of security system. They include verification of identity, permission to perform select activities on the network. Ergo, permissioned blockchain networks are rising in popularity among businesses. Ripple, one of the leading cryptocurrencies in the world, uses this network.
Conclusion
Blockchain is an end-to-end encrypted record, preventing fraudulent and unauthorized activities. As a result, businesses across the world are replacing traditional paper-heavy methods of the past with blockchain, ensuring efficiency and completing transactions at a faster rate.
