What is Blockchain?
Blockchain is a revolutionary technology that significantly reduces risk, with the potential to help stamp out scams and fraud, and keeps things transparent and scalable for all myriad uses.
Here we will show you the basics of Blockchain and how distributed ledger technology works.
In simple words, Blockchain is a mutual, immutable ledger that simplifies the recording of transactions and assets tracking in a financial network.
An asset can be any tangible thing such as property, cash, land, or it can be intangible like goodwill, intellectual property, copyrights, branding, or a digital currency or asset.
Relatively speaking, anything that has financial value and people can track and trade it through a blockchain or distributed ledger network.
Why is blockchain essential?
Almost all business networks run on data and information. The faster receiving of data, the more accurate it will be. Blockchain is perfect for delivering data in many ways. It is fast, shared, and provides complete transparency about the data saved on an immutable ledger, and only authorized members can access the information.
A blockchain network can efficiently track orders, transactions, payments, accounts, overheads, production, and much more. And all members can view the details end to end, with greater confidence and with full transparency.
Now, the question here arises how does blockchain differ from a standard database?
Key elements of a blockchain
Here are some vital elements of a blockchain that differs it from a standard database:
Distributed and transparent ledger technology
All members of the network can smoothly access the distributed ledger and the transaction records. With this mutual ledger, transactions are stored only once, without any duplication that we often see in standard databases.
No member can modify or tamper with a transaction after it has been recorded in the official ledger. If the transaction has an error, you need to add a new transaction to reverse the error. Besides, members can view both these transactions.
Many blockchains allow for programmable rules that act as digital - or smart - contracts. Defined rules, written in code, speed up the process and transactions, automating processes that previously took These contracts are saved on the blockchain network and executed automatically. A smart contract defines various rules and conditions for corporate bond transfers.
How does blockchain work?
Blockchains act as digital ledgers that record the transfer of value from one person or wallet address to another.
When a transaction occurs, it is saved and recorded as a “block” of information or data.
These transactions display the movement of an asset.
Also, the data block has the ability to record the data of your preferences like “who, what, when, where, and how.”
Furthermore, you can also add any condition like the set temperature of a food item or shipment.
All blocks are connected to the previous blocks and future blocks:
All these blocks of data form a chain of assets that moves from one place to another. The blocks confirm the precise time and transaction sequence. Furthermore, the blocks are linked with each other securely to prevent any block from being changed, and no one can insert a block between the two existing information blocks.
All transactions are blocked or stored in an irreversible chain:
Each extra block reinforces the verification of the old information block, and hence every block strengthens the entire blockchain. This also makes the blockchain tamper-evident and delivers immutability. This also eliminates the tampering chances by any hacker or malicious actor. All these things form a ledger of transactions that you and other members can rely upon.
Is Blockchain Secure?
Blockchain technology has gained people’s trust in several ways. First, fresh blocks are always kept linear and chronological.
In other words, new ones are always added at the “end” of the chain. In this way, the whole blockchain network becomes highly secure and trusted.
After adding a new block, no one can alter the block’s content. So, we can say that the technology is secure and the most suitable technology for creating trust between parties moving value between one another without ever knowing the sender or receiver.
Does Utopia Digital Asset Management's DeFi Infrastructure Fund strategy invest in blockchain base projects?
All the different cryptocurrencies, tokens and digital assets that our fund invests in have blockchain technology (or a derivative there of) as the foundation of their technology offering.
By investing in our DeFi Infrastructure Fund strategy on ICONOMI, you'll be gaining exposure to blockchain technology at the very epicenter of its use case.