Blockchain explained

As described in Blockchain for Dummies, “Blockchain owes its name to the way it stores transaction data—in blocks linked together to form a chain. As the number of transactions grows, so does the blockchain. Blocks record and confirm the time and sequence of transactions, which are then logged into the blockchain, within a discrete network governed by rules agreed to by the network participants.

“Each block contains a hash (a digital fingerprint or unique identifier), timestamped batches of recent valid transactions, and the hash of the previous block. The previous block hash links the blocks together and prevents any block from being altered or a block being inserted between two existing blocks.” In theory, the method renders the blockchain tamperproof.

Companies across industries are using AI and ML in various ways to transform how they work and do business. Incorporating AI and ML capabilities into their strategies and systems helps organizations rethink how they use their data and available resources, drive productivity and efficiency, enhance data-driven decision-making through predictive analytics, and improve customer and employee experiences.

The four key concepts behind blockchain are: Shared ledger. A shared ledger is an “append-only” distributed system of record shared across a business network. “With a shared ledger, transactions are recorded only once, eliminating the duplication of effort that’s typical of traditional business networks.” Permissions. Permissions ensure that transactions are secure, authenticated, and verifiable. “With the ability to constrain network participation, organizations can more easily comply with data protection regulations, such as those stipulated in the Health Insurance Portability and Accountability Act (HIPAA)” and the EU General Data Protection Regulation (GDPR). Smart contracts. A smart contract is “an agreement or set of rules that govern a business transaction; it’s stored on the blockchain and is executed automatically as part of a transaction.” Consensus. Through consensus, all parties agree to the network-verified transaction. Blockchains have various consensus mechanisms, including proof of stake, multisignature, and PBFT (practical Byzantine fault tolerance).

What are the business benefits of blockchain?

The primary benefit of blockchain is as a database for recording transactions, but its benefits extend far beyond those of a traditional database. Most notably, it removes the possibility of tampering by a malicious actor, as well as providing these business benefits