WHY DO USE BLOCKCHAIN?
Blockchains are tested by a number of industries today to determine how to take advantage of this distributed ledger technology that securely records transactions.
Blockchain technology offers new authentication and authorization tools in the digital world that prevent many centralized administrators from having to deal with them. It allows the creation of new digital relationships.
The blockchain is based on the following strong conceptual principles that naturally position it as the trusted technology par excellence:
- Decentralized architecture and governance neutrality based on the principle of consensus: it relies on a very large number of independent contributors and is therefore decentralized in nature. This means, unlike a centralized architecture where decisions can be made unilaterally, that it is necessary to reach a consensus or succeed in controlling more than 50% of the computational power of the blockchain, to have an effect on the system. Thus, any change in governance rules must first be approved by consensus by the contributors, who must then update the software code executed.
- Transparency of algorithms offering better auditability: any transaction, any block, any rule of governance is freely accessible and readable by everyone; as such, anyone can audit the system to ensure the proper operation of the blockchain and the legitimacy of transactions. The advantage is to allow experts from the user community to scan the code and alert if there is suspicion. So trust is based on whistleblowers.
- Secure Underlying Technologies: Cryptographic techniques and usage patterns ensure that the blockchain can not be tampered with; that the transactions entered are authentic even if they are issued under the guise of a pseudonym, and finally that the security of the blockchain is able to keep up with technological developments thanks to an adaptive security level.