About Blockchain Technology
What is Blockchain Technology?
Blockchain technology is a digital ledger that stores transactional records in databases through a network of connected peer-to-peer nodes. Every transaction in this ledger is authorized by the digital signature of the owner, which authenticates the transaction and safeguards it from tampering.
Initially, blockchain was the technology used by cryptocurrency developers to facilitate the exchange of financial "coins" between participants in the absence of a trusted third party. However, blockchain technology has evolved into a generic method of storing and processing data that is highly decentralized and secure. Because of its characteristics, the blockchain ensures that any copy of the data is always available, verifiable, and trustworthy.
How does it work?
The blockchain is a combination of three technologies:
Peer-to-peer networks containing a shared ledger
Means of computing, to store the transactions and records of the network
In simple terms, a blockchain is just a growing list of records, called blocks, that are linked using cryptography. Each block contains a coded algorithm of the previous block in the chain and is resistant to any changes once produced. This provides a verifiable chain of records going all the way back through the chain, proving the existence of the transaction unit and providing a concrete way to verify precedence.
How is it helpful?
At the national government level, a blockchain-based ‘’digital government’’ can protect data, improve operations, and eliminate fraud, waste, and abuse while simultaneously improving trust and accountability in government services. Because blockchain ensures that any copy of the data is always available, verifiable, and trustworthy, it is an ideal solution for such service delivery areas such as:
Secure storage of government, citizen, & business data
Product & service tracking and tracing
Payments & financial services
Identity management & land registration
Additionally, it would reduce labor-intensive processes and excessive costs associated with managing accountability & potential for corruption and abuse, saving government funds & taxpayer money. As an added benefit, widespread adoption of blockchain technologies would increase trust in government and online civil systems.