Solidify trust with blockchain from "summary" of Blockchain in Action by Bina Ramamurthy
Trust is a cornerstone of any working relationship, and blockchain technology provides a secure and transparent way to ensure trust between parties. With its cryptographic security measures, blockchain technology allows for secure and efficient transmission of data, ensuring the trustworthiness of the data and protecting individuals and organizations from fraud.- Building trust has always been a priority for many organizations, but with the invention of blockchain technology, it becomes even easier. With blockchain-based transactions, companies know that no fraudulent activities have taken place.
- Blockchain provides an immutable and secure record of all interactions between the parties involved. This ensures that there can be no interference from anyone outside and that everyone who is a part of the transaction trusts each other to keep their promises.
- Smart contracts also makes it easier to create unconditional trust among all parties. They are based on code which is stored on the blockchain ledger, thus eliminating third parties and reducing manual processes.
- To solidify trust among different entities in the network, businesses maintain rules of engagement and consensus methodologies. By clearly defining the rules that must be followed by all participants, it eliminates any confusion among the people involved in the transaction process.
- Enterprises use consensus protocols such as PoW (Proof-of-Work) to make sure that none of the exchanges take place without the authorization from either party. This helps ensure that both parties can trust the validity of the transaction before sharing sensitive information.
- The concept of reputation management brings another layer of trust to the blockchain system. It encourages good behavior among market participants since every action will permanently remain in the blockchain network. Hence, participants in the network need to have a good track record to gain trust from others.
