Building Trust in the Digital Age
In my last article, "Building Trust with Blockchain Technology" we talked about different things blockchain can do. Now, let's explore how five key features of blockchain help build trust in the digital world, something that's really important these days.
1. Distributed Database -
Each party on a blockchain has access to the entire database and its complete history. No single party controls the data or the information. Every party can verify the records of its transaction partners directly without an intermediary.
2. Peer-to-Peer Transmission :
Communication occurs directly between peers instated of through a central node. Each node stores and forwards information to all other nodes.
3. Transparency with Pseudonymous
Every transaction and its associated value are visible to anyone with access to the system. Each node or user on a blockchain has a unique 30-plus character alphanumeric address that identifies it. Users can choose to remain anonymous or provide their identity to others. Transactions occur between blockchain addresses.
4. Irreversibility of records
Once a transaction is entered in the database and the accounts are updated, the record can not be altered, because they are linked to every transaction record that came before them (hence the term "Chain"). Various computational algorithms and approaches are deployed to ensure that the recording on the database is permanent, chronologically ordered & available to all others on the network.
5. Computational Logic -
The digital nature of the ledger means that blockchain transactions can be tied to computational logic and in essence programmed. So users can set up algorithms and rules that automatically trigger transactions between nodes.
