Who is Satoshi Nakamoto, the man behind blockchain? Read the story
Blockchain has changed the way companies perceive ‘trust’ in a system
By making everyone aware of the transaction, this emerging technology skips the very need of a central authority
It is essential to have and create trust among business partners and vendors. But, how to trust someone enough to do business with and share sensitive details with? In pure business terms trust is nothing but transparency. In a bipartite transaction, it’s easy and simple — the first party knows what information they have shared with the second party and what more is to be shared. However, in a multi-party system, it’s difficult to maintain not only the record of shared information but also to verify and validate that each record or data point is indeed authentic and has not been manipulated or modified.
How can businesses ensure such transparency?
In the absence of a strict system, this simply involves rechecking the data with the original party, speaking to the stakeholders and other conventional methods of auditing the records.
But what happens when data is shared thousands of times over? This adds a layer of complexity that human effort simply cannot solve. As usual, we can turn to computers for help. And this is where blockchain has become an indispensable part of the digital economy.
What Is Blockchain?
As Richard G Brown, chief technology officer at R3, one of the world’s largest blockchain companies, explains a blockchain can store the entire record of all peer-to-peer transactions, which can not only be easily verified but which also doesn’t let anyone manipulate or modify the data.
“The first, and most important, feature of blockchains – and the thing that is probably genuinely new in terms of scale and scope – is that they create a world where parties to a shared fact know that the fact they see is the same as the fact that other stakeholders see: ‘I see what you see… and I know that what I…