Why is blockchain important? Blockchain overview.

Importance of Blockchain

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Categories: Cryptocurrency Blockchain

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Why is blockchain important? Blockchain overview.

Works on information the faster it is received and the more accurate it is, the better. Blockchain is ideal for distributing that information because it provides instant, shared and completely transparent information stored on an immutable ledger that can only be accessed by permitted network members. A blockchain network can track orders, payments, accounts, production and more.

And since members share the same view of the truth, you can see all the details of the transaction end to end, giving you more confidence, as well as new capabilities and opportunities. Blockchain Defined: Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets across a business network.

An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patent, copyright, branding). Virtually anything of any value can be tracked and traded on a blockchain network, reducing risk and cutting costs for everyone involved.

Key elements of a blockchain

 

Distributed ledger technology: All network participants have access to the distributed ledger and immutable records of its transactions. With this shared ledger, transactions are recorded only once, eliminating the duplication of efforts typical of traditional business networks.

Immutable records: No participant can change or tamper with a transaction after it’s been recorded to the shared ledger. If a transaction record includes an error, a new transaction must be added to reverse the error, and both transactions are then visible.

Smart contracts: To speed up transactions, a set of rules – called smart contracts – are stored on the blockchain and executed automatically. A smart contract can define the terms for corporate bond transfers, include the terms of travel insurance to be paid, and more.

Blockchain, Business network, Distributed ledger technology, Immutable records, Smart contracts, Blockchain Network, cryptocurrency

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