Blockchain is a distributed system that ensures trust among parties without the need for intermediaries from "summary" of Blockchain Technology Explained by Alan T. Norman
Blockchain, at its core, is a distributed system. This means that rather than relying on a central authority to validate transactions, it allows multiple parties to come to a consensus on the validity of each transaction. By distributing the power to validate transactions among a network of nodes, blockchain ensures that no single entity can manipulate the data for their own gain. One of the key benefits of this distributed system is that it fosters trust among parties. Because each transaction must be validated by multiple nodes on the network before it can be added to the blockchain, parties can be confident that the information on the blockchain is accurate and tamper-proof. This trust is crucial in many industries where parties may not have a pre-existing relationship but still need to transact with one another. Another important aspect of blockchain is its ability to eliminate the need for intermediaries in transactions. Traditionally, when parties conduct a transaction, they rely on a trusted intermediary, such as a bank or a payment processor, to facilitate the exchange of goods or services. However, with blockchain, parties can transact directly with one another, cutting out the middleman and reducing costs in the process. By removing intermediaries from the equation, blockchain also increases the speed and efficiency of transactions. Rather than waiting for a third party to validate and process a transaction, parties can interact directly with one another on the blockchain, allowing for near-instantaneous transactions.- Blockchain's distributed nature, focus on trust, and elimination of intermediaries make it a powerful tool for facilitating secure and efficient transactions between parties. As the technology continues to evolve, its potential applications are virtually limitless, from supply chain management to healthcare to finance.
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