Lesson 3: Blockchain Key Characteristics

Lesson Learning objectives : What are Blockchain Key Characteristics ? This lesson address this important topics in a simple and efficient way, to allow the participant understand the understand the key properties of Blockchains 


Now that we understand how a blockchain works lets look at the main characteristics of a blockchain namely Consensus, Provenance, Immutability and the Shared Ledger.

Data Providence

Providence originated in the fine art world and is used to authenticate a piece of art. Data providence includes all the information over a given time ensuring accuracy and accountability when auditing. The addition of Rf-id and QR scanning code technologies allows for products on a supply trail to be tracked, thus avoiding counterfeiting and theft by providing an easily audit-able trail for the investors to audit.

Immutability

No participant can tamper with a transaction on the network after it has been recorded to the ledger, new transactions need to be created in order to rectify previous mistakes. This ensures the validity of the transaction history by ensuring both transactions are visible to all participants.


Acceptance

A blockchain network offers a single place to check the accountability of an asset in order to validate a transaction.As long as the prerequisites are met the transaction contract will execute automatically. 

Consensus

As we learnt in the last lesson there are a variety of ways that a blockchain can be set up to do governance. As the ledger is decentralized it is important to treat admin and developmental decisions the same way, meaning that systems need to be in place to facilitate network governance.

On a permmisioned blockchain as all the members are known computational power is less of a factor.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Image Courtesy of: https://101blockchains.com/)

Now that we understand the key concepts of a blockchain we will look at the participants of a blockchain in the next lesson.

Back to: What is Blockchain ? – Complementary Course
Lesson Details
Length
5 minutes
Complexity
Easy