Montag, 27.05.2019 01:27 Uhr

Blockchain and its exceptional innovation potential

Verantwortlicher Autor: Carlo Marino Rome, 19.11.2018, 09:46 Uhr
Presse-Ressort von: Dr. Carlo Marino Bericht 5585x gelesen

Rome [ENA] A crucial role of democratic government is the proper distribution of resource among its citizens, both individual and companies. This encompasses the distribution of monetary resource and includes social intangibles such as security, democracy, the conditions for the maintenance of the rule of law. Furthermore it covers economic conditions such as the promotion of free markets, keeping inflation low and steady,

protecting the rights of private property, and guaranteeing contracts. This distribution in turn is based on an agreement between the citizen and the government on how rules are set (through voting and manifestos). As that democratic model has developed, the machinery of government has become larger, more integrated and more distant from the individual citizen. But something is changing and for example in distributed ledger technology, it’s possible to see one of those potential explosions of creative potential that catalyze exceptional levels of innovation in history. Since 2013, Estonian government registers, including those hosting all citizen and business-related information, have used a digital signature system based on blockchain

to authenticate the data in its databases. The Keyless Signature Infrastructure (KSI) pairs cryptographic ‘hash functions’ with a distributed ledger and allows the Estonian government to guarantee a record of the state of any component within the network and data stores. Distributed ledger technologies have the potential to help governments to collect taxes, deliver benefits, issue passports, record land registries, assure the supply chain of goods and generally ensure the integrity of government records and services.

A blockchain, originally block chain, is a growing list of records, called blocks, which are interconnected using cryptography. Each block contains a cryptographic hash (A cryptographic hash function is a special class of hash function that has certain properties which make it suitable for use in cryptography) of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree root hash). Trust is a risk judgement between two or more people, organizations or nations. In cyberspace, trust is based on two key requirements: authentication and authorisation. In return of the previous two key requirements it’s possible to be trustworthy in delivering services or products in a secure, efficient and reliable fashion.

Blockchain technology allows separate parties to engage in secure transactions, without the need for a mediator. Key features of blockchain include mechanisms that allow separate parties to securely determine the date and origins of data entries on each block in the chain. In addition, records of data on blockchain are immutable, which means that data cannot be altered or deleted once it is written on the chain. Users also have verified access to blockchain, and blockchain systems contain automated functions to execute smart contracts. Authentication and identification are interlinked but they are not the same thing.

Authentication does not require that one knows the identity but it does require that the other party provides a token that is inextricably linked to its identity, for example the pin number associated with a credit or debit card, or a fingerprint allied to a biometric passport or other document. Recent studies estimate that blockchain could potentially save 20 per cent of total physical transportation costs, cutting costs by up to $1 trillion in global trade. The European Union must focus on how blockchain can be exploited to increase international trade policies and supply chain management. Moreover, the reduction of barriers within global supply chains through the widespread implementation of blockchain is estimated to increase global

trade by almost 15 per cent. The rate of global change, both good and bad, is accelerating driven by internet-enabled globalization, societal expectations, and increasing competition for resources. Unlike the developing world, developed nations and their citizens have a consumerist ethos and privacy expectations that can conflict with traditional, resilient community values and personal norms of behaviour. This has left the state, rather than the community, responsible for helping those in difficulty and hard times.

Governments struggle to meet these growing demands of consumer expectation and apparently endless social assistance. Digital economies seek to exploit speed, reach and efficiency. Federated trust enables confidence and risk reduction. Interoperability enables efficiency and re-use of capabilities. In a mature supply chain, each time a company competes in a new platform or sector, re-use produces agility and a competitive advantage.

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