Blockchain Key Characteristics

Distributed

• Everyone holds a copy of the ledger.
• These copies are automatically synchronized, ensuring consistency across the network.

Shared

• All transactions are transparent and visible to everyone participating in the blockchain.

Immutability

• Once data is written to the blockchain, it becomes immutable—no one can alter or change it.

Shared Ledger

• Records all transactions across the business network.
• Shared between participants, with each participant having their own copy through replication.
• Permissioned access ensures participants see only appropriate transactions.
• Acts as the shared system of record for the network.

Smart Contracts

• Smart contracts are predefined protocols that automatically execute or oversee events based on the terms of an agreement.
• They aim to create transparency and eliminate third-party intermediaries, reducing the risk of fraud or malicious actions.
• Each transaction generates a smart contract, and the transaction is recorded on the blockchain.
• Once established, smart contracts cannot be changed.

Applications of Smart Contracts

• Smart contracts can automate processes such as:
  • Financial transactions
  • Service delivery
  • Authorization for digital content access
  • Enforcement of privacy safeguards
• Walmart Canada uses smart contracts in a blockchain-based freight-invoicing system:
  • They integrate real-time shipment data into invoices.
  • Payments are preapproved once the conditions in the shipping agreement are met.