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Blockchain

Blockchain technology has been used for data management at the corporate level for many years, but the public was first introduced to cryptocurrencies. Depending on how it is set up, a blockchain can easily manage the content and actions on its blocks. Permissioned blockchains combine public and private blockchains and allow access to anyone with permission, while public blockchains are accessible to everyone and private blockchains are restricted.

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10 views

Blockchain

Blockchain technology has been used for data management at the corporate level for many years, but the public was first introduced to cryptocurrencies. Depending on how it is set up, a blockchain can easily manage the content and actions on its blocks. Permissioned blockchains combine public and private blockchains and allow access to anyone with permission, while public blockchains are accessible to everyone and private blockchains are restricted.

Uploaded by

stanomjuguu
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Distributed ledgers, which form the foundation of blockchain technology have been used for

data management at the corporate level for many years. However, the public was first introduced to the
concept of cryptocurrencies, which is why they have only recently gained popularity and interest.
Depending on how the blockchain is set up, the content kept on its block together with the actions taken
by its different participants can be easily managed by blockchain technology. Blockchains are typically
created with specific goals in mind and this is important because it gives users access to different tasks or
information.

When it comes to the major types of blockchain that are available, the public and permissioned
are used to ensure that there is efficiency in service delivery. Permissioned blockchains are a
combination of public and private blockchains that anybody can access as long as they have permission
from the administrators to do so. On the other hand, public blockchains are accessible to everyone,
while private blockchains are restricted to a select group of users.

Moreover, there are differences between the two technologies. For instance, anyone is allowed
to sign up and take part in the main operations of the blockchain network on a public blockchain.
However, it is only the verified and chosen users who are allowed to participate in a private blockchain.
As such, the operator retains the ability to do different tasks such as adding, modifying, or removing
records from the blockchain. The other key feature is that both the private and public blockchain
characteristics are present in a permissioned blockchain. The capacity of permissioned blockchains to
grant different users on the network different permissions has led to a rise in their popularity.

Additionally, a public blockchain allows anybody to sign up and take part in the main operations
of the blockchain network. As such, the network allows anyone to read, write, and audit the ongoing
activities. This is important because it contributes to the self-governed and the decentralized nature that
is frequently emphasized when discussing blockchain. This is beneficial because an incentive program
drives new members to join hence improving on its elasticity at the public level. Furthermore, the ability
of public blockchains to function as the foundation of almost any decentralized solution makes them
incredibly valuable. This is beneficial because when a secured public blockchain is protected from
hacking attempts and data breaches, this leads to a situation where large number of network
participants would join it. This is because a blockchain is safer when it has more participants.

However, the disadvantage with the public blockchain is that it requires heavy use of energy to
maintain it. The absence of total privacy and anonymity is another challenge associated with public
blockchains. This is because anyone can view transaction amounts and the associated addresses on the
public blockchains. The anonymity of the user is also lost if the address owners are identified. Public
blockchains also draw users who might not always have the best interests of the community at heart.
The majority of public blockchains are made for cryptocurrencies, which are a popular target for hackers
and thieves due to their high value.

Application of blockchain technology

Blockchain technology can be applied in the supply chain management process to ensure that
this industry is in a position to track, report, and improve on the compliance process. Therefore, the
application of blockchain technology can be used to ensure the supply chain process is traceable. This is
because blockchain provides an opportunity where physical or digital products can be traced throughout
the supply chain process. Blockchain is able to record information, trace the evolution of assets, and
display historical asset records. When it comes to the Ethereum blockchain, asset tracking procedures
are enforced through smart contracts. Whether an asset is digital or physical, it gives anyone the ability
to see the history and journey in real time. For instance, pharmaceutical companies are very concerned
about regulatory and compliance reporting because many patients rely on prescription drugs. As such, it
is important that the supply chain process should operate efficiently without having too many or too few
medications.

Besides that, block chain can be applied in the supply chain process to ensure that errors related
to manual tasks are eliminated. The advantage of this is that it will lead to reduced friction and the
reporting expenses will also go down with automated compliance and reporting. By supplying data to
the appropriate stakeholders in a seamless manner and in real time, blockchain compliance will further
improve corporate governance. Finally, blockchain has the potential to enhance reporting and
compliance for manufacturers, prescription drugs, medical equipment, and other consumer goods.

Distributed ledger technology

Distributed ledger technology (DLT) is regarded as a digital asset transaction recording system,
which allows asset transactions and their specifics to be recorded in several locations in a simultaneous
manner. When compared to the conventional databases, the distributed ledgers lack a central data store
and administrative features. The technology infrastructure and protocols that allow for the concurrent
access, validation, and updating of the records that make up distributed ledgers are specifically referred
to as DLT. It operates on a computer network that spans several nodes, entities, or locations.

As such, every node in a distributed ledger processes and validates each item. When this
happens, it ends up producing a record of every item thus improving on the accuracy. Both dynamic
data, like financial transactions, and static data, like registries, can be recorded in a distributed ledger. A
good example of a known application of distributed ledger technology is blockchain. The decentralization
principle is a key feature of the operation of DLT. For instance, DLT functions on a peer-to-peer (P2P)
network, where numerous nodes store, validate, and update the ledger concurrently, which is different
as compared to the conventional centralized databases. The impact of this is that it lowers the possibility
of a single point of failure and does away with the requirement for a central authority.

DLT stores data securely using cryptography, and only authorized users are able to access it. This
has been made possible by the use of security features such as cryptographic signatures and keys.
Additionally, the technology produces an immutable database and this is effective because it means that
once the data has been stored, it cannot be removed. In the long-term, it would still be applicable since
it would be available for all the future generations to see it.

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