Blockchain

What is Blockchain?

Ledger illustration

• Blockchain is a shared ledger technology that allows any participant in a business network to access a system of record (ledger).
• Blockchain Key Characteristics
• Fundamentally, a blockchain is an immutable, distributed ledger.

Key Features

• Blockchain is a mathematical framework designed to securely store data, making it highly tamper-resistant. Transactions are handled by Validating and Mining Transactions
• It is suitable for securely tracking a wide range of information such as:
  • Account & trade balances
  • Ownership of property
  • Taxes
  • Births, deaths, marriages
  • Charges, transactions, property sales

Economic Infrastructure

• Blockchain is a new economic infrastructure that maintains records.
• Using blockchain, participants can exchange value easily, just like sending a text message, without relying on a central authority to verify transactions.

Problem

Solution

Initial Application: Bitcoin

Blockchain Milestones

• The first use of blockchain was with Bitcoin, where each node on the network keeps a duplicate of the ledger.
• Miners solve cryptographic puzzles to create a universally accepted record of transactions.

Trust and Traceability

• Blockchain promotes automated trust, securely sharing sensitive data and providing visibility into who has accessed or modified it.
• This ensures full traceability of transactions and records.

Contract Management

• Smart contracts on the blockchain automate record-keeping and sharing.
• They eliminate the need for:
  • Manual contracts
  • Invoice reconciliation
  • Manual signatures

Data Sharing

• Blockchain ensures that stored information is immutable and resistant to tampering.
• It enables the use of:
  • Digital certificates
  • Digital signatures
  • Tracing the history of a product before purchase