The Core Principles of Blockchains

The Core Principles of Blockchains

The blockchain builds a digital trust platform, implying the near impossibility of tampering the information once it has been inputted and the capacity for all involved actors to verify and trace each step. Each time there is a new transaction, a new block is created and appended to the existing blocks, thus the name ‘blockchain’. All the blocks are updated on the network at the same time and contain the full history of the involved transactions, thus maintaining a chain of integrity (or a chain of trust).

Another important aspect of the blockchain technology are smart contracts. They refer to programs (algorithms) using the information contained in a blockchain to automatically fulfill an agreed upon procedure, such as a transaction or reporting. For instance, if a container has been loaded in a ship and that this event has been encoded in its bill of lading blockchain, then a smart contract can be used to automatically pay the terminal operator. Smart contracts thus expand the usefulness of blockchains by providing a unique and enforceable document.