Blockchain is defined as a securely shared decentralized data registry. Blockchain technology allows a common group of participants to share data. Transaction data from multiple sources can be easily collected, integrated and shared with blockchain cloud services. Data is divided into shared blocks that are chained with unique identifiers in the form of cryptographic hashes.
Blockchain provides data integrity through a single source of truth, eliminating data duplication and increasing security.
Since data cannot be changed without the agreement of all parties, fraud and data tampering are prevented in a blockchain system. A blockchain ledger can be shared but not modified. If someone tries to change the data, all participants are alerted and it is known who made the attempt.
Blockchain Technology
How does blockchain technology work?
Think of the blockchain as the historical record of transactions. Each block is serially "chained" to the previous block and is stored in an unalterable record in a peer-to-peer network. Cryptographic trust and assurance technology applies a unique identifier or digital fingerprint to every transaction.
Trust, responsibility, transparency and security are integral elements of the chain. This allows many types of organizations and commercial partners to access and share data. This phenomenon; the third party is known as a consensual trust.
All participants protect the encrypted record of every transaction with a decentralized, highly scalable, durable and non-violable recording mechanism. No additional overhead or intermediaries are required for the blockchain. Having a single decentralized source of truth reduces the cost of running reliable business interactions between parties that do not fully trust each other. In the permission-tolerant blockchain solutions that many organizations prefer, participants are allowed to be on the network, and each participant keeps an encrypted record of every transaction.
Any company or group of companies that needs a secure, real-time, shareable record of transactions can benefit from this unique technology. Storing everything in multiple locations provides better security and accessibility by eliminating the central point of vulnerability.
To learn more about blockchain, its underlying technology and use cases, here are some key definitions.
· Decentralized trust:
The main reason why organizations use blockchain technology instead of other data stores is to guarantee data integrity without relying on a central authority. This is called decentralized trust through trusted data.
· Blockchain blocks:
The name blockchain comes from the fact that data is stored in blocks, and each block is linked to the previous block, forming a chain-like structure. Thanks to blockchain technology, you can only add (end) new blocks to a blockchain. You cannot modify or delete a block added to the blockchain.
· Reconciliation algorithms:
Bir blok zinciri sistemindeki kuralları uygulayan algoritmalar. After the participating parties create rules for the blockchain, the consensus algorithm ensures that these rules are enforced.
· Blockchain nodes:
Data blocks in the blockchain are stored in nodes. These storage units keep data synced or up-to-date. Each node can quickly determine if a block has been modified since it was added. When a new full node joins the blockchain network, it downloads a copy of all the blocks in the chain. Once the new node is synchronized with other nodes and has the latest blockchain version, it can receive all new blocks like any other node.
There are two main types of blockchain nodes:
- Full nodes store a complete copy of the blockchain.
· Light nodes only store the latest blocks and may want to retrieve older blocks that users need.
Three types of blockchain
· public blockchain
Anyone can participate in the public, permissionless blockchain network without restrictions. Many types of cryptocurrencies operate on the public blockchain based on rules or consensus algorithms.
· Permission-based or private blockchain.
Private or permission-based blockchain allows organizations to control who can access blockchain data. Only authorized users can access certain datasets. Oracle Blockchain Platform is a permission-based blockchain.
· Federated or consortium blockchain.
Blockchain network where the consensus process (mining process) is closely controlled by a preselected group of nodes or a set of preselected stakeholders.
Benefits of blockchain - Business value
The use of blockchain technology is expected to increase significantly in the coming years. This rule-changing technology is both innovative and revolutionary. Blockchain will innovate existing business processes with modern efficiency, reliability and security.
Blockchain technology provides certain business benefits that help companies in the following ways:
- Builds trust between cooperating parties by providing reliable and shared data
- Eliminates siled data by integrating data into a single system through a distributed registry shared within a network accessible to allowed parties
- Provides a high level of security for data
- Reduces the need for third-party agents
- Creates real-time, untouchable recordings that can be shared among all participants
- Allows participants to guarantee the authenticity and accuracy of products placed in the trade flow
- Ensures seamless tracking and monitoring of goods and services across the supply chain
· Oracle provides food security with Blockchain Platform
Blockchain IoT partnerships
Blockchain is no longer a new technology. Indeed, blockchain solutions have continued to evolve and meet business needs with other technologies such as artificial intelligence (AI), Internet of Things (IoT), and machine learning. These key technology partnerships help users gain important insights from data.
In IoT deployment, traditional IT systems are not suited to handle the huge amount of data generated. The volume, speed, and diversity of data generated by IoT networks can strain enterprise systems or significantly limit the ability to make timely decisions with reliable data. Blockchain's distributed ledger technology has the potential to overcome these scalability challenges with greater security and transparency.
What is Hyperledger?
Hyperledger is an open source project initiated by the Linux Foundation to enhance the global collaboration of blockchain technologies. The main purpose of Hyperledger is to develop open source blockchain applications that fulfill scale, performance and security objectives for enterprise goals. Hyperledger supports an unbiased and open community of members who contribute code to development of Hyperledger Fabric software, which many organizations use as the foundation for their blockchain projects.
As a key member of Hyperledger, our Oracle and Blockchain solutions are built on Hyperledger Fabric. Thus, we leverage open source and ensure interoperability with core protocols is maintained.
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