Managing global trade relationships requires trust and high levels of coordination. What is blockchain but a decentralized, distributed, shared ledger that provides a consensus system for trust building? These attributes allow the public to understand their interactions with supply chain companies. Websites offer trading features like artificial intelligence, trading bots, market analysis, live customers, and much more for bitcoin traders. You can use crypto trader for a safer trading experience.
The fact that blockchain can provide this transparency has led the banking industry to start exploring how it could help improve the credibility and public trust in data shared between brands and retailers. The mining process is also essential because it enables decentralization – through mining, it is impossible for any one party to control the blocks on which transactions are recorded on the blockchain network.
Additionally, every computer with an internet connection has access to all past transactions and any future transaction not yet seen by other participants in the network. It allows for the verification of transaction records, as well as securing the blockchain network. Let’s discuss how blockchain does it all with perfection.
Creating the mechanisms and processes of managing who has access to which form and other data fields on the blockchain are the focus of much research in this field. For instance, a 2015 study by experts discovered that one-third (33%) of organizations have some form of policy to control access to information on their central database or system. For example, they follow security safeguards such as requiring passwords, two-factor authentication or wiping accounts after a defined period. However, there are still challenges in the management of data access.
For example, when a new employee joins an organization, it can take days for that individual to receive all the necessary credentials to access company systems and data. A 2015 study concluded that companies lose an average of $10 million yearly in fraud related to employees taking unapproved actions on enterprise systems and networks. It presents an opening for cybercriminals to use this moment of vulnerability to infiltrate the system.
Single point of access:
Blockchain can help reduce or eliminate these risks by having a single-point-of-access (SPOA) verification method; this is where the SPOA designation comes from. SPOAs are designed with three functions: authentication, authorization, and auditing. Authentication ensures that the SPOA has a valid identity before providing access to data or services. For example, this would be the first authentication stage if a new employee wants to access information in a company directory.
Authorization refers to authorizing a user to act on the system, such as making a purchase or accessing sensitive data. Auditing would be identifying who accessed any specific piece of data and when they did it – providing transparency of activity. However, this single access point is subject to attack and vulnerability, creating additional security measures for proper implementation.
Blockchain and its native technology, distributed ledger, decentralization and security can bring about fundamental changes in terms of transparency for companies. Specifically, it is being explored to reduce costs associated with third-party auditing by doing away with the need for an external party to verify or approve transactions. Blockchain technology can also create a paper trail for transactions which can be helpful in situations where a business or government agency is trying to prove something did not occur.
One area in which blockchain can change the world is food safety. As technology in our day-to-day lives has increased across all industries, so has the ability for food companies to get into the hands of consumers. As a result, more online food recalls and missteps have increased consumer protection and confidence. However, the anxiety from one misstep can cause people to seek out alternative sources of their food. But now, this could change with blockchain and its benefits for everything from sourcing to record keeping.
IBM’s food trust project:
Blockchain and digital ledger technology have been heavily researched in initiatives such as IBM’s Food Trust Project (FTP) as it uses blockchain to increase transparency within supply chains, especially for products that are perishable like meat or produce (i.e. foodborne illness), while also reducing the time and money it takes to resolve food safety issues.
The FTP provides an auditable trail for sellers of perishable food products on how the product moves from farm to fork. In addition, the project seeks to increase trust in the supply chain by developing a transparent and secure platform for producers and distributors. It does this by using a blockchain ledger system as a reference for all parts of the supply chain – from the seed inventory or planting cycle to the harvesting, transporting, distribution and retailing of food items.
Blockchain can also create increased transparency in areas where consumers no longer have faith in their institutions – such as with customer records. It is especially true in the case of healthcare, where the potential for abuse or mismanagement of information is much greater than for other industries because it involves sharing sensitive records about people’s health.
Blockchain technology can create a system where records are transparent and private simultaneously, decreasing the risk of a data breach that can affect consumers and lead to fraud. For example, Health Insurance Portability and Accountability Act (HIPAA) Regulations allow protected patient data to be shared across various systems. Still, this data could serve as fertile ground for hackers.