The blockchain is a very innovative technology and very promising in terms of trust. What can he do exactly?
- Establish a digital identity
As stated in our guide “How does Blockchain technology work? The identity element of Blockchain technology is realized by the use of cryptographic keys. The combination of a public key and a private key creates a strong digital identity reference based on possession.
A public key is the way you are identified in the crowd (like an email address), a private key is the way you express your consent to digital interactions. Cryptography is an important force behind the Blockchains revolution.
- Serve as a registry system
As stated in our guide “What is a decentralized ledger? Blockchains are an innovation in the recording and dissemination of information. They are good for recording static data (a register) or dynamic data (transactions), which makes it an evolution in the recording systems.
- Prove immutability
A characteristic of a blockchain database is that has a history of itself. For this reason, they are often called immutable. In other words, it would be a huge effort to change an entry in the database, because it would have to change all the data that comes after, on every single node. In this way, it is more a recording system than a database.
- To serve as a platform
Cryptocurrencies were the first platform developed using blockchain technology. Today, people have gone from the idea of a cryptocurrencies trading platform to a platform for smart contracts.