Blockchain is a decentralized digital ledger, which records transactions taking place in a peer-to-peer network. In a simple explanation, blockchain is a collection of databases in form of blocks, connected to each other. Nothing can be deleted or modified in the database after it has been added and approved. And that’s why blockchain comes under data privacy search.
While there are numerous blockchain platforms, perhaps the most recognized blockchain platforms are the Bitcoin blockchain and Ethereum, the blockchain for Ether. The Bitcoin blockchain is credited with sparking the adoption of blockchain as it sheds light on the potential of decentralized finance. However, Ethereum is the blockchain platform that has emerged as the catalyst for innovation because of its ability to enable the building of “smart contracts” and “distributed applications” (DApps).
A smart contract is a self-executing agreement stored on a blockchain with the terms being written in computer code. Each smart contract is programmed to execute certain actions upon the completion of the identified terms. If the terms of the smart contract are not completed, the smart contract will not execute. Smart contracts are vital components of many blockchains today because they process data and help manage the interaction of individuals within a given blockchain network. DApps are software applications, which have a similar interface to any app or website currently used today. However, the distinction of a DApp is that it is built on a decentralized network like Ethereum using smart contracts. This is akin to how apps and websites are built using code.
How Cryptocurrency Fits Into Blockchain
Cryptocurrency or digital currency is a medium of exchange secured by cryptography. Bitcoin and Ethereum, typically come to mind when thinking about cryptocurrency. All cryptocurrencies are created and stored electronically in a series of blocks. Blockchain, or distributed ledger technology, is the underlying technology on which cryptocurrencies are built.
The Impact On Business
Business relies on information and the ability to process such information in an accurate and expedient manner. Blockchain provides businesses with the ability to enhance the manner in which it delivers and receives information because of its immutable, decentralized, and accurate nature.
The decentralized nature of blockchain eliminates the need for an intermediary serving as a central clearing authority and decreases risks associated with traditional centralized systems and their functionality. By removing the intermediary between a given server and the data being collected, distributed, and analyzed, blockchain enables an increase in the speed and efficiency of data processing. Additionally, blockchain reduces the risk of human error, which typically leads to a reduction in costs and expenses.
Traceability is a key benefit of blockchain that businesses in various industries are using. Tracing transactions on the blockchain is user-friendly because all data is stored on one immutable digital distributed ledger. This makes it easier to review the history of transactions. The traceability feature of blockchain technology has been useful for businesses distributing products on a complicated supply chain. it gives a clear vision to trace the products from start to end.
The Legal Search Result
Blockchain comes under data privacy search for how businesses operate in various industries and sectors. This disruptive technology will continue to face legal and regulatory challenges as it has become the talk of the town. However, several federal agencies have exercised jurisdiction over different aspects of blockchain-based businesses, but too soon to say anything. Smart contracts and DApps, particularly, will face an increase in legal search as the Federal and state government begin to establish legal standards.
A Delhi University graduate, paving her way in the world of writing. An optimist, creative, and go-getter. Loves to read, research, and write about different topics in technology or cryptocurrency, and serve them to the readers in the most meaningful way possible.