Block Chain Management System

CHAPTER 1 - INTRODUCTION

WHAT IS BLOCKCHAIN?

Blockchain is in essence a shared database, populated with entries that must be confirmed and encrypted. It can be think of as highly encrypted and verified shared Google sheet where each entry in the sheet is dependent on a logical relationship to all its predecessors. It provides a means of securely and efficiently creating a tamperproof log of sensitive activity, which can run the gamut from cross-border money transfers to a record of shareholding.

Blockchain is as a distributed ledger, or database — every party that uses the database has access to it and participates in its production and upkeep. The data within a given block chain is connected which means each block chain stores one particular

Verification involves the solving of mathematical puzzles related to the transactions themselves. The type of verification method is related to how many parties are involved in a given block chain, what their relationship is to the other parties, and how important speed and efficiency is to the block chain use case.

¥ If verified, the block is added to the chain, where it is permanently stored as encrypted data that is accessible to all nodes within the network. This permanence is a key value of block chain because it makes record keeping highly secure since the record is permanent and can be accessed at any time by any invested party. This is beneficial both in terms of reporting and security.

¥ And inherent in the blockchain's network is so-called "fault tolerance." Because nodes work together to verify blocks, and the ledger lives across multiple nodes, if one node is compromised, the others can continue to process and verify transactions. That prevents outages, maintains security and privacy, and allows for ongoing efficiency, if problems do

These parties typically know one another, and as a result, trust isn't as significant an issue as in public implementations.

BLOCKCHAIN’S VALUE

Blockchain technology isn't like most disruptive technologies, launched by startups and designed to grab market share from legacy businesses. Instead, block chain is a disruptive, widely available technology that legacy businesses are primarily using to rethink their own processes in order to operate more effectively and efficiently amid a changing financial landscape. Blockchain offers a number of key advantages to stakeholders:

¥ Security and compliance: Blockchain is a highly secure platform because of the large number of parties that have access to the encrypted data and help to verify it.

¥ Decreases bureaucracy: Blockchain can replace many of the functions that traditionally occurred offline, like shareholder management, ownership transfer, or record keeping. That helps eliminate friction and streamline a variety of