Role of Blockchain in Fostering a Trust-Based Economy

Fremont, CA: Organizations are anticipated to intensify their efforts in exploring blockchain technology as a key component in cultivating trust within the evolving digital economy. Research from Deloitte LLP indicates that the current "trust economy" is increasingly characterized by peer-to-peer (P2P) transactions, which are primarily facilitated through blockchain technology. These transactions operate independently of traditional methods, such as guaranteed cashier's checks or credit ratings. According to the Deloitte analysts' reports, this system hinges on each participant's digital identity and reputation, which will soon be securely stored and managed within a blockchain framework.

The "trust" factor of individuals may include tax information, professional or financial histories, consumer preferences, and medical information. Reputational identities can also be maintained by companies who can develop a good trustworthiness being a business vendor or a business partner.

Blockchain as Trust Builder

Blockchain is an electronic ledger for the public like a relational database which can easily and openly be shared among users to create records. These records are basically unchangeable in nature, and each of them is stamped for once and linked to the previous one. The digital records or transactions are lined like a thread which is called a block, out of which the name has been created. It allows either an open set of users who can participate in electronic ledger. However, each of such blocks is linked with a particular participant. Participants can keep the blockchain updated being a vital part of the system and once new data enters in the chain; it can never be removed. Blockchains, however, contains verified and true records of each and every transactions made within a system.