Blockchain is a digital transaction and identity platform that operates as a digital ledger. Blockchains work by maintaining an updated list of all transactions.
So, what is blockchain? The power of blockchain is in the decentralized ledger, which keeps a record of each transaction that occurs across a fully distributed peer-to-peer network. Blockchains can be public or private. Blockchain technology can be used for identity and verification due to its strong cryptography that validates and chains together blocks of transactions, making it very difficult to tamper with or manipulate a transaction record.
To clarify, cryptocurrency (for example, Bitcoin, a digital form of money), is not the same thing as blockchain. Bitcoin leverages blockchain technology, but blockchain applications are much broader than just cryptocurrency.
For example, blockchain and AI—two evolving technologies—have the potential to transform the Digital Transaction Management market. Leveraging blockchain-based Smart Contracts can be particularly useful for processes that require multiple parties or steps. However, because blockchain is in its early stages, Aragon recommends holding off on deploying blockchain technology for digital identity or digital signatures; current DTM offerings are still safer.
Digital Transaction Management (DTM) has become an imperative for enterprises that want to become fully digital. The promise of blockchain, when used correctly, offers the potential for true innovation in Digital Transaction Management. This research note overviews blockchain and three key use cases in Digital Transaction Management.
With the ubiquity of blockchain and cryptocurrency talk, it is no surprise that many enterprises are feeling the urge to learn more about it, and even deploy a blockchain pilot. For blockchain technology explained, this blog will give you the basics of blockchain, the current state of the technology, and what to know about getting started.