Proof Point
Blockchains are distributed digital ledgers that record, authenticate and prevent duplication of transactions using algorithms or specific set of rules, without need for central authority
Blockchain Overview
Proof Point Findings
Definition – Distributed digital ledgers that record, authenticate and prevent duplication of transactions using algorithms and specific set of rules, without need for central authority
Blockchain Process
- Transaction is initiated
- Requested transaction is broadcasted to peer-to-peer network of computers, known as nodes
- Nodes network authenticates transaction and user status
- Validated transactions are combined to form new block
- New block is added to existing blockchain, recording permanent, time-stamped, and transparent transactions
- Requested transaction is performed or completed
Types of Blockchain
- Public – Open networks that allow any party to participate in block creation
- Factom handling records for businesses and governments without worrying about loss or alteration of data
- Blockstream forming basis for accounting system built
- Bitcoin public cryptocurrency facilitating peer-to-peer payments
- Private – Closed networks where access is granted by a central authority
- GemHealth centralizing health claims management on blockchain within and across organizations
- Martine Jaarlgard tracking supply chain process from raw material to finished garment
- Blocktrace digitally storing diamond certificates to reduce fraud and eliminate need for third parties conducting identity and value checks
- Hybrid or Permissioned – Closed networks operated by group of trusted entities
- Consortium of European banks establishing trade finance platform for processing payments of small and medium enterprises
- Finance companies and technology startups in South Korea forming consortium for handling securities trade processes
- Japanese banks establishing consortium for creating payments platform built on blockchain
