Everything You Need To Know About Blockchain
Blockchain is a term utilized to represent distributed ledger technology. Blockchain is used to build a storage system for data in a distributed and immutable mode. So there are key features we need to mention. Immutability – this means that once data is written to a blockchain data storage or ledger, it cannot be changed – so it’s there forever. For instance, in a relational database, no matter how much security you have, the data can be accessed and modified on the system. A blockchain system guarantees that if one bit of data is altered it says it is in an invalid state, and since the data is distributed on various systems, the verified data with a justified state can be retrieved. Distribution – is the key to trust. As long as the data you see is in the blockchain and it’s in a valid state you can trust the data to be accurate. This trust is the key and this trust is achieved in a blockchain system by replicating the datastore on several hosts on the internet. For instance, as long as the peers accept that bit of data is valid, so you can completely trust that data that is stored on that system. In Blockchain the trust is requisite. Immutability – Trust Distribution – valid/invalid For many industries trust is a problem. The automobile industry is one of those where trust, or lack of it, causes problems. People order used cars from other countries which do not easily share tracking information and this can mean that faking data about the car’s prevenance and history is easier. For instance, odometer fraud is one of the problems that you can seriously impact the value of a vehicle. Representing a vehicle as having been used 5,000 miles instead of 50,000 miles can mean a huge difference in perceived value and potential usable life span of the car or truck. In many countries car service records are largely kept on paper which can of course very easy to be fake. So, let’s imagine that pushing all service providers to a blockchain and all the readings kept on the blockchain. The integrity and immutability of the blockchain data means that a modification of the records would be detectable. Moreover, agencies such as insurance companies can also contribute by appending accident details of a car giving a much more complete picture of the vehicle’s history in a way which is very difficult or even impossible for dishonest vendors to fake. Transferring money from one country to another takes your time and can be expensive because of the need to comply with multiple different regulations and policies, but eventually, another person receives the money. Your bank updates its records and sends them to the main clearing bank in your country where they are passed through a number of systems where it analyzes them to prevent money laundering and to comply with various trade embargoes. Assuming your transaction passes the checks, the funds are then sent them to another country’s clearing bank. They again update the record and send it to the receiver’s bank account. Even in these highly automated times, it can take several days for the money to arrive in the destination account. This is where Bitcoin can offer an alternative to the traditional brocks and […]
