Blockchain is a decentralized database which is shared across a network of computers. This type of database contains a series of unchanged records of data that is not owned by a single entity, rather managed by a cluster of computers.
Blockchain is made of blocks of data (block) that is secured and bound to each other using cryptographic principles (i.e. chain).
This type of technology is a combination of three different existing technology components. These three components are:
- Private key cryptography
- A distributed network which includes a shared ledger
- Accounting and transactions
Blockchain technologies address three challenges in data analytics:
- Traceability – each time goods are exchanged on a blockchain, an audit trail is present to trace where the goods came from.
- Transparency – its transaction ledger for public addresses is open to viewing.
- Security – blockchain is more secure than other record keeping systems as it encrypts and links each new transaction to the previous transaction.
This technology can be practically applied to any industry, including:
- Banking and financial services
- Travel and transportation
- Retail and consumer goods
In Data Defined, we help make the complex world of data more accessible by explaining some of the most complex aspects of the field.
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