The Blockchain Technology
Blockchain technology has various definitions, but essentially it is a method of organizing databases. It is a decentralized method that allows participants to store and distribute valuable digital information without trusting each other. Data is arranged in a continuous chain of blocks that store any changes to the database. All blocks are securely linked, making it impossible to change previous data without destroying the integrity of the database. Blockchain technology can be applied to various applications and does not necessarily require large computing power.
Blockchain is a technology to organize databases
Data is arranged in a continuous chain of blocks. If you take Bitcoin as an example, its blockchain is a very long sequence of blocks (containing transactions) that starts with a so-called genesis block and ends with the last generated block.
The blockchain stores the history of all changes that have ever been made
You could also say a database of transactions that are just added to. And it’s true – a blockchain „never goes back.“ That’s why it can store all changes – unlike traditional databases, which only store the current state of the system.
The blockchain prevents backdating without database integrity
Your advantages that arise from the blockchain
Companies quite intuitively recognize blockchain as something big, but they can’t see the application areas for which this technology is suitable. It is similar to the introduction of the Internet – it is time to recognize the possibilities.
It should be noted: It’s about what blockchain could give you, not what it can’t. This means that everything is based on the success of the actual implementation.
- speed & safety
- data integrity
- transparency
- network reliability
The Blockchain Technology
If there is a need to enable inspection, control audits or the like, a blockchain can directly provide this information that is stored in it. Even if it is a company running a private Blockchain, it can provide an auditor with software that opens an "auditor node" for him and simply provides all the necessary information. With traditional databases, this takes longer because only the current state is stored and all the archives have to be looked through first.
In a decentralized environment, the parameter of trust is completely eliminated or it exists only partially. Blockchain allows the use of a consensus mechanism that defines the rules under which all participants reach agreement (examples: proof-of-work, proof-of-stake, BFT).
Since each new block contains the hash value of the previous one, it is impossible to forge data in a blockchain, as it would destroy the entire database. Any change is immediately noticed by other participants. Once again, you can't fool anyone when you are in the public eye
You can have multiple independent servers. Even if one of them crashes, the others continue to run because each node contains a complete copy of the database.
Timestamps are a way to assign an exact time to data or documents. Blockchain enables timestamps when there is no trusted partner to "promise" you immutability. Instead, this is achieved through consensus.
The Blockchain Technology
If there is a need to enable inspection, control audits or the like, a blockchain can directly provide this information that is stored in it. Even if it is a company running a private Blockchain, it can provide an auditor with software that opens an "auditor node" for him and simply provides all the necessary information. With traditional databases, this takes longer because only the current state is stored and all the archives have to be looked through first.
In a decentralized environment, the parameter of trust is completely eliminated or it exists only partially. Blockchain allows the use of a consensus mechanism that defines the rules under which all participants reach agreement (examples: proof-of-work, proof-of-stake, BFT).
Since each new block contains the hash value of the previous one, it is impossible to forge data in a blockchain, as it would destroy the entire database. Any change is immediately noticed by other participants. Once again, you can't fool anyone when you are in the public eye
You can have multiple independent servers. Even if one of them crashes, the others continue to run because each node contains a complete copy of the database.
Timestamps are a way to assign an exact time to data or documents. Blockchain enables timestamps when there is no trusted partner to "promise" you immutability. Instead, this is achieved through consensus.
Decentralized Finance: A Revolution for Business
"Each of us has dreams, goals and desires for the future. We will show you the way."
Michael Leischnig – Founder of the DataLab Group
Do you need advice in the field of blockchain?
Responsible for you in Germany:
- DataLab GmbH
- Haller Str. 124
- DE-74564 Crailsheim
- info.germany@dataLab.group
- +49 (0) 7951 / 9599836