August 12, 2018
Blockchain technology is the technology behind digital currencies such as: bitcoin, ethereum, ripple, Monero and dash just to mention a few. This form of cutting edge technology has indeed changed the way the business industry operates. Specifically, blockchain technology has made it possible for two anonymous parties to make transactions without an intermediary or trusted third party. It is debatably true that block chain technology is unique in the sense that it has managed to solve the consensus problem, its system is decentralized, and guarantees privacy and transparency of the parties involved in a given transaction and has done away with the need to have an intermediary in various transactions.
The consensus problem is one of the major challenges that blockchain technology has managed to solve. This problem is the inability of components that do not share a memory in a given network to reach a consensus. In other words, before this technology programmers did not understand how such components could be designed in order to reach an agreement. The blockchain technology solves this problem by the use of a decentralized system. Specifically, blockchain technology achieves this by making sure that there is proof of work in a given network. This is done by among other things ensuring that all transactions in a network are transmitted to all nodes (various computers in a given blockchain network) and such transactions are received by the nodes in form of a block. The technology also ensures that the various nodes accept a given block only when all the transactions that it carries are valid.
Lastly, the ability of blockchain technology to guarantee privacy and transparency makes it stands out among other forms of technology. With this technology, everyone in the network is able to access the digital ledger that stores transaction data. It is also worth to note that different users in a given blockchain network can transact anonymously. The privacy of users in a blockchain network is also guaranteed through the use of zero knowledge proofs Non-interactive zero-knowledge proofs are a variant of zero-knowledge proofs in which no interaction is necessary between prover and verifier. These are popularly known as ZKSnarks and they help in hiding the addresses as well as the amount being transferred between users in a given blockchain network. Moreover, the use of private and public keys to verify a given transaction within given parties makes this technology quite secure to use. Encryption and decryption of messages also guarantees privacy.
About Robin Trehan: Robin Trehan is a Partner at Credit Capital Funding in Chicago, Illinois. Trehan is an expert on a diverse set of banking topics including blockchain, e-payments, crypto banking, and commercial banking. Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business.
Contact: Robin Trehan
Company: Credit Capital Funding