Blockchain technologies are included in the broader family of Distributed Ledger technologies, which are systems that rely on a distributed ledger that can be read and modified by multiple chains on a network. In order to validate changes to be made to the registry, in the absence of a central entity, nodes must reach consensus. The ways in which consensus is reached and the structure of the ledger are some of the features that characterise different Distributed Ledger technologies.
THE CHARACTERISTICS OF BLOCKCHAIN TECHNOLOGY
Information is recorded by distributing it across multiple nodes to ensure cyber security and system resilience.
TRACEABILITY OF TRANSFERS
Each item on the register can be traced back to its exact origin.
Platforms allow transactions to be handled without intermediaries, i.e. without the presence of trusted central entities.
TRANSPARENCY AND VERIFIABILITY
The content of the register is transparent and visible to all and easily accessible and verifiable.
IMMUTABILITY OF THE REGISTER
Once written on the log, the data cannot be changed without the consent of the network.
PROGRAMMABILITY OF TRANSFERS
Ability to schedule certain actions that are performed when certain conditions occur.