What is the Blockchain?
A Blockchain is a type of digital database and append-only ledger. When a transaction occurs, the data is validated and subsequently stored as an immutable ‘block.’ Every block is validated based on previous blocks, resulting in an immutable Blockchain. Transactions on the Blockchain are validated either by an algorithm or a third party in the field. This technology makes it safer to perform peer-to-peer transactions without the involvement of an intermediary.
Why is the Blockchain secure?
Due to the validation of blocks in a specific, subsequent order, the modification of a recorded transaction would require modifying all previous blocks. This makes data very difficult to alter and therefore very secure. The Blockchain guarantees the fidelity and security of data and ensures trust between peers without the need for a trusted third party.
for Physical Goods
A smart contract is a self-executing program, or transaction protocol that is stored on the Blockchain. They are used to automate the execution of an agreement and enable all participants to be certain of an outcome, without the involvement of an intermediary. When a smart contract is agreed between parties, the Blockchain can enable for the funds to be stored securely until the conditions of the agreement are met. For example, if person A wants to buy gold from person B, a smart contract could be agreed in which person A pays the funds, and upon delivery of the gold, the funds are released to person B.
What are Digital Twins?
A digital twin is a virtual model that acts as a digital counterpart for a real-world physical asset. The digital twin updates in real-time when changes to the physical asset occur. When this data is stored on the Blockchain, the digital twin can function as proof of authenticity and enable traceability. A digital twin can therefore be created for all goods within a supply chain, for which production stages can be tracked and material content and provenance can be stored on the Blockchain.