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Blockchain is a way of recording data that follows certain principles.

Here are the 5 basic principles of blockchain technology:

Distributed database: Each party in a blockchain has access to the entire database and its entire history. No single party edits the data or information.

Peer-to-peer transmission: Each user, also known as a node, communicates directly with another user. All information and transactions between the two parties are then sent directly to the other nodes.

Transparency by pseudonym: Even though transactions are open and in communication with all other nodes on the blockchain, there is still a sense of anonymity as users are given a “30-plus character alphanumeric address” that identifies them. The option to remain anonymous is entirely up to the user.

Blockchain​

Blockchain is a way of recording data that follows certain principles.

Here are the 5 basic principles of blockchain technology:

Distributed database: Each party in a blockchain has access to the entire database and its entire history. No single party edits the data or information.

Peer-to-peer transmission: Each user, also known as a node, communicates directly with another user. All information and transactions between the two parties are then sent directly to the other nodes.

Transparency by pseudonym: Even though transactions are open and in communication with all other nodes on the blockchain, there is still a sense of anonymity as users are given a “30-plus character alphanumeric address” that identifies them. The option to remain anonymous is entirely up to the user.

Irreversibility of records: When a transaction between parties is completed, it is entered into the database and all other user accounts are updated with the transaction. This record cannot be undone, as this “block” is then linked to previous transactions.

Computational logic: Users can create algorithms and rules that will trigger transactions between participants.

Real life uses:
  • Payment transactions and money transfers

  • Monitoring supply chains

  • Digital identities

  • Information sharing

  • Digital voting Medical record keeping

  • Managing IoT networks