What is Blockchain ?
In this article, we will show an introduction to the Blockchain technology, and summarize the Blockchain for business requirements.
What is Blockchain ?
Blockchain is a shared immutable ledger for recording the history of transactions.
Blockchain is an immutable transaction ledger, maintained within a distributed network of peer nodes. These nodes each maintain a copy of the ledger by applying transactions that have been validated by a consensus protocol, grouped into blocks that include a hash that bind each block to the preceding block.
Permissioned vs Permissionless Blockchains:
In a permissionless blockchain, virtually anyone can participate, and every participant is anonymous. In such a context, there can be no trust other than that the state of the blockchain, prior to a certain depth, is immutable. The first and most widely recognized application of permissionless blockchain is the Bitcoin cryptocurrency.
Permissioned blockchains, on the other hand, operate a blockchain amongst a set of known, identified and often vetted participants operating under a governance model that yields a certain degree of trust. A permissioned blockchain provides a way to secure the interactions among a group of entities that have a common goal but which may not fully trust each other.
Blockchains for business are generally permissioned and private.
Blockchain for Business Requirements:
- Records all transactions across the business network.
- Shared between participants.
- Participants have own copy through replication.
- Permissioned, so participants see only appropriate transactions.
- THE shared system of record.
- Immutable due to an append-only data structure.
- It provides controlled access to the ledger.
- It represents the business rules associated with the transaction.
- It is written in programming languages, supported by the blockchain technology.
- Example: Defines rules on which a vehicle can be transferred to a new owner.
- Participants in a business network:
- might be extremely sensitive about how much information they share.
- require appropriate privacy and confidentiality between subsets of participants.
- Transactions need to be authenticated.
- Participants agree that a transaction is valid.
- Assets have a verifiable audit trail.
- Consensus: The process of keeping the ledger transactions synchronized across the network.
- Ensure that ledgers update only when transactions are approved by the appropriate participants, and that when ledgers do update, they update with the same transactions in the same order.