As a secure distributed book technology, the block chain is stored on thousands of servers. Block chain visibility allows anyone on the network to see each entry in real time. Safety protection is applied by password and a network range. This makes a user (or organization) difficult to manipulate the entire network.
When a set of data or transactions are added, this information becomes a “block”. Each block is put on a timestamp and is linked to the previous block in an encryption method to form additional links. Therefore, there is a “block chain” word.
Block chain application development
The block chain helps government, enterprises and ordinary people through government portals to share documents, information, and valuable resources, these portals have high security due to their encryption and network scope, the data and resources in the block chain will Encrypted and encoded.
The characteristics of block chain technology are decentralization, transparency, and invariable. There is no single “block chain technology”. Conversely, according to different variants, each variant has a particular feature determined by its environment and use case.
Through these changes, the block chain will drop the possibility of deception to the lowest, effectively improved the lengthy procedures to ensure protection and maintain traceability.
Market Application – How does the block chain work?
The main mechanism of block chain technology is; each block contains data, block has a hash value (you can simply understand the hash value into a piece of data, such as a file, or a string DNA, or ID card. It can identify a block and all of its content, and always unique, just like a fingerprint. Once a block is created, its hash value will be calculated) and the ah of the previous block. The information stored in the block depends on the type of the block chain. For example, the Bitcoin block chain saves more information on the transaction here, such as the number of senders, recipients, and coins.
Change anything in the block will result in changes in the block chain. It is this technology that makes the block chain so safe.
In addition to security, the block chain technology can work at high speed, and due to its network mechanism, there will be no failure. This means that the block chain provides efficiency for its use case. The following is five basic principles of this technology and performing different functions.
Everyone or user on the block chain can fully access and control the database, everyone knows the history of their own database. Any other person or third party cannot interfere with these databases, and each user has the right to verify their own transactions without being interfered by third parties.
2. Point-to-point communication
Communication and text exchange between peer nodes are done directly without the need to use a central node. Information is forwarded to all other nodes via a single node.
3. Transparent transaction
Anyone who can access this system can quickly view transactions and added value. For these transactions, each user has more than 30 alphanumeric addresses, which is unique, specific, can identify transactions.
4. Do not revoke transactions and records
Once the user has traded and updated the database and account, these records cannot be changed. Each record is associated with a particular transaction, and installs different algorithms and methods to ensure that transactions are recorded in the database.
5. Calculation logic
The block chain is in the classified account nature, which means that the transaction is designed in the calculation logic and security programs. Users can also set some specific algorithms to automatically trigger nodes between transactions.
Market application of block chain technology
This technology and its application have developed in the financial sector, and its participation in the transaction has increased. For example, Tai Wong provides a highly secure and developed platform for all transformations from the energy market to hedge funds and go to the centralized cloud service.
From a consumer perspective, it provides low-cost cross-border payment services. Users of Master cards and Visa cards are also using this technology, which is also because of its cost.
Under this technique, the user does not even know the participation of distributed books. In addition, financial institutions such as banks also explore new opportunities for use cases in monetary policy, loans and taxation.
In terms of the practical application of the block chain, it has exceeded the category of financial assets. Information related to goods, identity, digital rights, and credentials can also be stored and protected by distributed books. Block chain information and data can only be confirmed only if the original information is accurate. The block chain can also provide no cost verification for people carrying and logging information.
In short, this technology reduces intermediaries and minimizes fraud and violations.
The benefits of public sector use area block chains
The public sector uses the block chain, which can be beneficial from three aspects.
Currently, the government and businesses have spent a lot of money and time to improve their existing systems. Therefore, they want to reduce costs, transfer funds and time to create new and improved things.
The block chain eliminates the need for a third party or intermediary using an automated network management transaction and saving records. When verifying the transaction, the interaction is reduced, further eliminating the need for money or time to do basic things (such as foreign exchangements), which means that the money and time costs spended by trading, operations and infrastructure will be reduced. There is a block chain system, and global economic activities can benefit from the block chain.
Suppose the value and ownership of each asset is safely recorded in a completely transparent and unality shared classification account. In this case, it is no longer possible to hide information. Block chain technology can improve the transparency of capital flow, helping to prevent future financial disasters.
The most recent survey of Thomsonreutess shows that banks spend 40 million pounds in understanding customer compliance every year, and some banks spend more than 300 million pounds in compliance, anti-money laundering and customer due diligence.
With the help of the block chain, these organizations can know that the customer’s ID file has been independently checked and verified, so they don’t need their own compliance checks, thereby reducing their administrative burden and cost. Since the data stored on the block chain is not reversible, it will provide a single truth source to minimize repeat or errors.
In addition, business activities can also benefit from block chain systems. This has a good application in insurance. In the Internet of Things (IOT), automotive, electronic equipment, home appliances can automatically detect corruption, then trigger the repair process, and triggered the repair process, and pay claims.
The block chain solves the time-consuming process and automates it to maximize efficiency. It also eliminates people as human error with the help of automation. Especially in the healthcare area block chain system, medical records are shared in a distributed network consisting of verify nodes.
Users (including doctors, nurses, and patients) can automatically access files and add new data. By accessing key medical data, doctors and medical service providers benefit from this solution. The agreement increases data interoperability across different data points, thereby enhancing exchange of information and knowledge.
The block chain will focus on commercial event notes, insurance services, business, real estate, etc. By deleting an intermediary, it provides faster processes for all business activities. For example, the property management process will become more efficient by unified ownership recording systems and intelligent contracts, and the intelligent contract will automate the tenant – the landlord protocol.
Block chain applications can also help companies manage and monitor their supply chain, improve efficiency and labor demand, and bring competitive advantages for governments and companies.
Credit and security
Block chain technology has higher security than other platforms or record storage systems. Any of the recorded transactions need to be agreed in accordance with the consensus rules. Each transaction is encrypted and has an appropriate link to the old trading using a hash method.
The block chain system is a safer record save system, which will greatly reduce fraud. Tampering evidence and extensive access to block-based registration can provide urgent transparency and data democracy.
This means that the block chain is particularly suitable for combating corruption and tracking transaction procurement processes in asset registration. Use a shared and distributed book database to eliminate the needs of the intermediary, reduce the contents of the paper, and reduce free discretion.
In the block chain, only one identity is accessed throughout the network, so the individual’s identity will be protected. Its transparency and safety systems will raise the public to the trust of the government and the digital government portal.
Government and all business activities, companies and people can benefit from block chains, and more transparent systems. It will eliminate the needs of trust during the notarization process. It also provides evidence that is critical to the notary process. Considering that the data cannot be changed in any possible manner once it is written in the block chain, verification is 100% accurate.
For example, the block chain-based land registration can provide a safe, decentralized, publicly verified and non-variable recording system. Through the system, individuals can clearly prove their land rights.
It can also improve network security by using a dispersion store solution. For hackers, only a single attack point is not enough, and it is basically impossible to attack all nodes.
It can even prevent piracy by tracking the distribution of content copyright and identifying unauthorized content distribution channels by encryption and watermarking.
In 1991, the block chain was introduced as a research project. In the past 20 years, many improvements and development have been experienced, and companies around the world are guessing the ability of this technology and the development direction of the next few years. Just like many of the proven technologies, most applications of the block chain are financially financially financially. Due to many practical applications that have been implemented and explored, the block chain is finally able to name, not just a digital virtual currency.
The block chain is intended to make the company and the government’s operations more accurate, efficient, safe and cheap. There is still a certain degree of sound of the block chain in some organizations. Technical does also bring challenges and opportunities.
Despite these challenges, the block chain can make the application better and will solve the distributed system problem of specific cases from the beginning.