Blockchain is a type of distributed ledger technology that allows for decentralized, transparent, and immutable record keeping. There are different types of blockchains, including public blockchains that are open to anyone and private blockchains that require invitation. While blockchains provide advantages like transparency, challenges remain around anonymity, information quality, interoperability, adoption, and legal uncertainty. Potential use cases include smart contracts for flight delay compensation and blockchain-based land registries.
Blockchain is a type of distributed ledger technology that allows for decentralized, transparent, and immutable record keeping. There are different types of blockchains, including public blockchains that are open to anyone and private blockchains that require invitation. While blockchains provide advantages like transparency, challenges remain around anonymity, information quality, interoperability, adoption, and legal uncertainty. Potential use cases include smart contracts for flight delay compensation and blockchain-based land registries.
Blockchain is a type of distributed ledger technology that allows for decentralized, transparent, and immutable record keeping. There are different types of blockchains, including public blockchains that are open to anyone and private blockchains that require invitation. While blockchains provide advantages like transparency, challenges remain around anonymity, information quality, interoperability, adoption, and legal uncertainty. Potential use cases include smart contracts for flight delay compensation and blockchain-based land registries.
Blockchain is a type of distributed ledger technology that allows for decentralized, transparent, and immutable record keeping. There are different types of blockchains, including public blockchains that are open to anyone and private blockchains that require invitation. While blockchains provide advantages like transparency, challenges remain around anonymity, information quality, interoperability, adoption, and legal uncertainty. Potential use cases include smart contracts for flight delay compensation and blockchain-based land registries.
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Blockchain As an Enabling Technology
Distributed ledger technology and blockchain
• Distributed ledger technology (DLT) is simply a
decentralized database that is managed by various participants • Blockchain is simply a type of DLT • For example, the Bitcoin blockchain is completely different from the Ethereum blockchain or the NEO blockchain or the EOS blockchain • They may all achieve more or less the same goal, but each has its own rules, coding languages, purpose, and so on. Characteristics • Decentralized and transparent : • There is no central database or central authority and each participant maintains a copy of the ledger. • nodes are able to check on any transaction that has taken place at any time on the blockchain. • The degree of decentralization varies from blockchain to blockchain. • Consensus-driven: • All participants share and update the ledger after reaching a consensus and agreeing on the validity of transactions taking place. • Immutable: • Once data is added to the blockchain, it cannot be altered. • This is done via the use of particular cryptographic techniques Types of block chains • Public blockchain: network is completely open and anyone can join and participate. • Anyone can become a ‘bookkeeper’, add blocks to the blockchain, and conduct transactions. • Bitcoin, Ethereum, or Litecoin are good examples of public blockchain networks. • Private blockchain: network requires an invitation and places restrictions on who is allowed to participate wildly. • Hyperledger Fabric (Linux Foundation), Corda (R3), or Quorum (JP Morgan) are good examples of private blockchains Challenges • Anonymity: in public block chains like bitcoin block chain, every transaction is traceable, but it is difficult to know who is behind a given movement of funds. • At present this is positive factor • It can prove a challenge when it comes to complying with KYC, AML, and other transaction-monitoring requirements • This is why certain industries have instead opted to using private blockchains where the identity of participants is known. Challenges • Quality of Information: While the data on a blockchain is immutable, it does not necessarily mean that it is accurate. The same principle of ‘garbage in, garbage out’ applies as with any other database. • Interoperability: The blockchain is still in its infancy and there are no established industry standards for its technology infrastructure. Most blockchains today operate in their standalone universe with little interoperability with other blockchains. • Mass Adoption: This adoption will take some time Challenges • Legal Uncertainty: Current regulatory frameworks particularly in highly regulated industries like financial services or healthcare— were not drafted with blockchain technology in mind. Use Cases of Blockchains • AXA has started to implement blockchain smart contracts to offer “direct and automatic compensation to policyholders whose flights are delayed”. • Insurance contract—is recorded on the Ethereum blockchain. • The smart contract is directly linked to global air traffic databases and so, if a delay of two or more hours is recorded in air traffic systems, policyholders will automatically receive their compensation. Use Cases of Blockchains • Land registrations and ownership transfer: How blockchain-based land registries can harness smart contract technology to not only establish land titles but also automatically transfer land ownership and hamper fraudulent transactions. Using this technology could cut transaction time between land buyers and sellers substantially. Watch this video • How block chain works • https://youtu.be/boARRLlu5Uc