Block Chain- The Future is here.................

Learn about what block chain is and what it can do.

Block chain is a decentralized ledger technology used by a business network to securely exchange digital or physical assets. Each member of the network is granted access to an up-to-date copy of this encrypted ledger so they can read, write and validate transactions. Once a transaction is validated using a consensus process, it's instantly committed to all ledgers in the network.

The net result is faster, private, confidential and audit-able business-to-business interactions among suppliers, distributors, financial institutions, regulators or anyone wishing to make a secure exchange. Block chain creates a permanent, digitized chain of transactions that are grouped in blocks and can’t be altered.

Some Benefits of Block-chain:

Reduces settlement  time from days to near Instantaneous
Removes Over Head and cost intermediaries
Reduces Risk of Collusion and tampering
Increases Trust Through shared Process and Record Keeping


Key concepts :

Asset

Anything physical or digital that can be owned or controlled to produce value. Examples include a house, music, patents or cash.

Ledger

A system of recording transactions for a business.

Distributed ledger technology

A system of record that is shared among participants in a business network.

Business network

A group of participants in an economic transaction. Members exchange and verify items of value through a ledger, which each member possesses and whose content is always in sync with the others. A business network can include customers, suppliers, banks, regulators, governments and others.

Business network

A group of participants in an economic transaction. Members exchange and verify items of value through a ledger, which each member possesses and whose content is always in sync with the others. A business network can include customers, suppliers, banks, regulators, governments and others.

Identity

Details about a person or an entity that allow identification or recognition. Trusted identity is critical in a permissioned block chain network in order to ensure that entities are transacting with who they think they are transacting with. All details of identity may not be known or not disclosed to a counter party, but enough is known by the identity provider to ensure that the transaction can be trusted.

Consensus

The process of all participants in a block-chain agreeing to a network verified transaction. Consensus ensures that shared ledgers are exact copies and lowers the risk of fraudulent transactions since tampering would have to occur across many places at the same time.

Immutable

All transactions committed to the block chain are permanent and unalterable. Participants cannot change past transactions or deny past transactions. Any changes to a past transaction can only be done with an off-setting new transaction with consensus from the network of participants. This property leads to the dramatically increased trust in business transactions on the block chain.

Smart contract

A set of business terms on a block chain. They are embedded into the programming language of a block chain, executed automatically and verified and signed by all permissioned users.

What's changing in the world

There are changes afoot in the world of business and technology, and those changes are highlighting the need for new solutions. Block chain can help. 

1.Enterprise growth increasingly depends on trusted partnerships.

• Whether it’s global partners connecting, supply chains becoming more integrated, or businesses merging – all require more trust and transparency.
• Disconnected operations and silos inhibit growth. Efficiency and information sharing are required to realize full competitive potential.

2.The confluence of technological innovations is generating new business models.

• Cloud computing powers billions of transactions, distributed systems enable secure networks that protect the integrity of transactions, and advanced cryptography secures both networks and transactions.
• Companies will use these new technologies to disrupt industries and increase competition.

3.Increasing regulation, cyber crime and fraud inhibit business growth.

• To keep pace with regulations, companies increase compliance staff and budgets. In addition, data breaches and other security incidents are more common and costly than ever.
• Companies must effectively address both security threats and compliance requirements so they can direct resources toward driving innovation.

Fast fact

·        In just three areas—logistics, property records and capital markets—there are up to $300 billion worth of associated costs that block-chain could address.