Blockchain is what’s on the lips of anyone working with information exchange today because of a wide range of reasons. This article will look at the well-known block technology while focusing on how it improves trust and validity during information exchange.
Because of the way blockchain technology is created, it can be used to build trust between anyone engaging in a business transaction. This is if the two parties can leverage the technology properly. Not only this, but blockchain’s data framework can be used to enhance the validity of the information it is containing.
Blockchain, like the name implies, is a chain of blocks joined together by cryptography, with each block containing data. It is a decentralized system which means there is no central body that regulates it, and the information is open to anyone that wants to view it.
Even if you don’t plan on including blockchain in your business, you might still turn to cryptocurrency like every other person. If you know how to buy Ethereum in Nigeria or any other cryptocurrency, you can purchase one and invest in it.
Features of Blockchain
There are certain features of blockchain that makes it able to improve validity and trust during information exchange. For most businesses that engage in information exchange, problems usually arise because of miscommunication and lack of trust. If one of the parties are also engaging in fraudulent activities, it might be hard to figure this out.
But, all of these change with the incorporation of blockchain technology.
For one, blockchain technology cannot be changed, altered, or adjusted. Once the information has been written on the ledger, no one can change it, which means there will be no situation of fraud and changing numbers during business transactions.
Since everyone can see the information on the blockchain ledger, the trust will come in. One of the features of blockchain is that its open to everyone and anyone that wants to view it, leading to transparency and openness in a business.
The information that everyone sees will be the same, so there can be no cases of miscommunication. Blockchain is decentralized so anyone can see the information on the ledger. Even if its one of the millions of blocks connected by cryptography, the information on it cannot be lost in the transaction.
How Blockchain Can Improve Validity
Blockchain most involves peer-to-peer (P2P) transactions, especially in the case of cryptocurrency. For instance, if you want to convert BTC to NGN, you can either do so with a P2P platform or a trusted and popular one like Vertex Market.
Blockchain will also reduce the time and cost of these transactions, but since it does not have a central authority, some users can engage in dishonest behaviour. These involve selling one good to multiple people or changing what’s on the ledger. This is why blockchain is important – to prevent such.
Blockchain creates systems where validity can be assured, but there are different ways in which it can improve it. The nature of blockchain alone can improve validity. Here are the different ways in which the structure of blockchain can do so.
- Blockchain cannot be hacked. If one of the transactions have been hacked or corrupted, it will present the hacker with a hash value. Once this happens, the receiver of information will be informed and they can check if it is meant for them by submitting their digital signature. If a hacker wants to successfully affect blockchain, it has to hack all the ledgers on the network at the same time.
- Blockchain users are given two keys. The private key is used for signing transactions digitally, while the public key is used to identify the user. During the transaction, especially with cryptocurrency, we have the recipient’s public key, sender’s public key and currency or information. With the sender public key, the user can verify a transaction and its hash value.
- All blockchain transactions are checked and approved by users. On the platform, the users will exchange and add new transaction blocks which cost the computational cost annually.
From its structure, it’s almost impossible for blockchain to not offer valid information. Even if it passes through millions of blocks to get to the recipient, the information remains valid. It cannot be altered by hackers because of the many crosschecking, and the two keys ensure that the information remains correct, with no external influence.
Blockchain and Enhancing Trust
It is often said that blockchain technology has a way of improving trust between parties that are engaged in a business. Blockchain generates trust based on its system, similar to how it improves the validity of the information.
The chain of blocks of data that make up blockchain technology has a particular structure that is unbreakable and undeniable. The way the data was written will remain the same even when it comes to the chain. One can even create many blockchains with the same data until a particular time. An example of this is Bitcoin’s mining process.
For there to be trust in blockchain technology, particular objects like tokens, blockchain and nodes, must be present. Not only this, but the business must understand their connection.
During a business transaction, the one thing that can keep it going is the trust of both parties. Without trust, the deal can be called off. Blockchain is used to create networks that will enhance trust for businesses.
The features of blockchain as explained above will show you just how it encourages trust. Since the information can be seen by everyone, there can be no cases of cheating, changing numbers, swindling and being cut off-guard. Everyone will have access to the information.
Another way in which it improves trust is the fact that the ledger information cannot be changed. The information cannot be adjusted or deleted, which means that no one can mistakenly or purposefully adjust what you have.
Blockchain as the Leading IT Technology
In information exchange and technology, blockchain is now seen as the leader. The platform might have been operating for a while, but it’s still taking steps to improve and offer more services. Blockchain is focusing more on enhancing trust and maintaining validity throughout the information technology system.
The platform will go a long way in building business relationships as well as making things easier and faster.