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Published:Dec 21, 2023
What is blockchain?
Blockchain is a shared and tamper proof ledger designed to facilitate transaction recording and asset tracking processes in business networks. Assets can be tangible (such as houses, cars, cash, land) or intangible (such as intellectual property, patents, copyrights, brands). Almost anything of value can be tracked and traded on the blockchain network, thereby reducing various risks and costs.
What is blockchain technology?

Distributed ledger technology

All network participants have the right to access distributed ledgers and their tamper proof transaction records. With the help of this shared ledger, transactions only need to be recorded once, eliminating the typical duplication of work in traditional business networks

Tamper proof records

After the transaction is recorded in the shared ledger, no participant can change or tamper with the relevant information. If there is an error in the transaction record, a new transaction must be added to undo the error, and both transactions are subsequently visible

What are the network types of blockchain?

There are multiple ways to establish a blockchain network. They can be public, private, licensed blockchain networks, or established by alliances

Public blockchain network

Public blockchain is a blockchain that anyone can join and participate in, such as Bitcoin. Disadvantages may include requiring a large amount of computing power, extremely low or no privacy in transactions, and weak security. And these are important considerations for enterprise use cases of blockchain

Private blockchain network

Private blockchain networks are similar to public blockchain networks and are also decentralized peer-to-peer networks. However, in a private blockchain network, an organization is responsible for managing the network, controlling who is allowed to participate in the network, executing consensus agreements, and maintaining shared ledgers. This helps significantly increase trust and confidence among participants, depending on the use case. Private blockchain can run behind enterprise firewalls and even be hosted within the enterprise

License based blockchain network

Enterprises that establish private blockchain typically also establish licensed blockchain networks. It should be noted that public blockchain networks can also become licensed networks. This model imposes restrictions on personnel authorized to participate in the network and execute specific transactions. Participants need to receive an invitation or permission to join

Alliance blockchain

Multiple organizations can share the responsibility of maintaining blockchain. These pre selected organizations determine who can submit transactions or access data. If all participants must obtain permission to participate and share responsibility for blockchain, then consortium blockchain is an ideal choice for enterprises

What are the advantages of blockchain technology?

Blockchain is a shared and tamper proof ledger designed to facilitate transaction recording and asset tracking processes in business networks. Assets can be tangible (such as houses, cars, cash, land) or intangible (such as intellectual property, patents, copyrights, brands)

Higher level of trust

By using blockchain technology, as a member of a membership network, you can be confident that you have received accurate and timely data, and your confidential blockchain records can only be shared with network members whom you have specifically granted access to

Higher security

All network members need to reach a consensus on data accuracy, and all verified transactions will be permanently recorded and cannot be tampered with. No one can delete transactions, even system administrators are no exception

Higher efficiency

By sharing distributed ledgers among network members, it is possible to avoid wasting time in recording reconciliation. In order to accelerate transaction speed, a series of automatically executed rules called "smart contracts" are stored on the blockchain

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