Blockchain technology Overview

About the Blockchain Technology

Definition

Blockchain is a shared, immutable ledger for recording transactions, tracking assets and building trust. Discover why businesses worldwide are adopting it.
·Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.

Blockchain’s core value proposition

Blockchain can increase privacy, enhance trust and remove friction within a business network, but its core value proposition rests on two key elements: the verified origin of data and trusted processes, such as workflows.

Verified origin of data: While blockchain doesn’t guarantee data veracity, it does make it clear who put what data onto the ledger and when.
Trusted processes, such as workflows: Blockchain creates the ability to track each step in a workflow so that permissioned parties can understand and track how data flows through the process.

Blockchain’s value proposition also hinges on providing consensus, provenance, immutability & finality to participants’ data in a business network.

Why Blockchain Technology is important

Business runs on information. The faster it’s received and the more accurate it is, the better.
Blockchain is ideal for delivering that information because it provides immediate, shared and completely transparent information stored on an immutable ledger that can be accessed only by permissioned network members.
A blockchain network can track orders, payments, accounts, production and much more. And because members share a single view of the truth, you can see all details of a transaction end-to-end, giving you greater confidence, as well as new efficiencies and opportunities.

Key Benefits of Blockchain

1. Greater Trust | 2. Greater Security | 3.More Performance & Efficiencies

The real long-term potential of blockchain lies in its ability to help organizations under below three criteria’s as follows:-

Exploit the immutability and provenance of shared data.
Transact data broadly with one another.
Retain privacy and security for data.

Procedure to determine Blockchain fit in to the System –

Aligning blockchain’s value proposition to your solution is an iterative process

Consider below touch points in real time perspective

Do multiple parties need to share trusted data without a central authority?
Do parties need to transfer assets between each other?
Do participants need privacy?
Do participants need a greater trust?

Blockchain for business is a team effort

Steps involved in Blockchain in Business / Enterprise Blockchain Project handling is as follows

Identify your Business Problem
Form your ecosystem
Design your Business Model
Choose your Governance Model
Consider legal matters
Start building your Blockchain Solution

BLOCKCHAIN TECHNOLOGY KEY ELEMENTS

Distributed Ledger Technologies

·All network participants have access to the distributed ledger and its immutable record of transactions.
· With this shared ledger, transactions are recorded only once, eliminating the duplication of effort that’s typical of traditional business networks.
Discover how the leading open-source blockchain for business platform is transforming companies, driving growth and creating new business models

Immutable Records

Distributed Ledger Technologies

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

DeFi - Decentralized Finance

A smart contract is a set of promises, specified in digital form, including protocols within which the parties perform on these promises.
To speed transactions, a set of rules — called a smart contract — is stored on the blockchain and executed automatically.
A smart contract can define conditions for corporate bond transfers; include terms for travel insurance to be paid and much more.
Smart contract helps to solve the issue of mistrust between parties and business partners.
Smart contracts have a number of benefits for a wide range of industries, reducing unnecessary costs and time expenditure while enhancing transparency.
Blockchain smart contracts have the potential to benefit all industries, including banking, insurance, manufacturing, retail, real estate, and services, etc.

DeFi - Decentralized Finance

Decentralized finance—DeFi—refers to the shift from traditional, centralized financial systems to peer-to-peer finance enabled by the Ethereum blockchain.
From stablecoins, to lending and borrowing, to prediction markets, margin trading, payments, insurance, gaming, and NFT marketplaces, the DeFi ecosystem now represents an expansive network of integrated protocols and financial instruments worth more than $53 billion USD
DeFi applications are deployed as smart contracts, and the rules/logic of the application are written as code rather than enforced by companies and legal documents
DeFi applications are composable. One DeFi smart contract or application can be used by other smart contracts and more complex applications, and nearly all DeFi smart contracts are public open-source code, which means that the entire financial system is being built in the open.