Blockchain technology can transform established business processes and radically change the work with regulators. Nevertheless, blockchain remains an experimental technology – many problems of its use have not yet been resolved.
Interest to the blockchain continues to grow: back in 2016, many banks, exchanges, and fintech companies announced the launch of their technology development projects. Blockchain remains one of the hottest topics in the field of financial services and the stock markets, and there is every reason to expect an increase in the speed of its spread. Several large financial organizations immediately formed teams to study the capabilities of the technology, and some market participants joined in consortia to develop standards for its use.
The technology is really capable of protecting the data that we have to work with, while making it more accessible and transparent. In addition, the blockchain can significantly reduce costs and minimize the time required to solve problems and eliminate errors.
Implementing a blockchain is by definition a complex process, but the basic idea of the technology is simple: a distributed registry or database running simultaneously on a multitude (sometimes millions) of nodes distributed around the world between different users and organizations. The uniqueness of the blockchain lies in the immutability or irreversibility that the cryptographic protection system guarantees. For example, when transactions from the registry are grouped into blocks and written to the database, the record is preceded by cryptographic verification, as a result of which it is almost impossible to change the state of the registry by any kind of fraud. In favor of trust in the blockchain, it is also said that any changes to the data in the blockchain are possible only if network participants confirm the legitimacy of the transaction in accordance with general rules and protocols.
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