Figure 7 .9 : Blockchain network and the process of adding new transaction to ledger

Importance of blockchain technology

Blockchain technology harnesses the distributed software architecture and

provides a shared ledger with a single source of truth for the recorded

transactions without depending on a centralized entity for trust. Hence, it helps

in enabling trust in the digital world using technology. Any tangible or

intangible asset of value can be represented and tracked on a blockchain

network, which brings transparency, increases processing speed, and reduces

cost. On top of the blockchain network, contracts can be automated through

smart contracts. Therefore, the benefits of blockchain technology include

transparency, security, and efficiency, which make it unique in enabling a layer

of trust over the Internet for various applications.

Blockchain models

Blockchain

can

be

set

up

either

in

public/ permissionless

or

private/ permissioned configurations, each of which has its own advantages and

disadvantages, as given in the following table:

Public/Permissionless

Private/Permissioned

No permission is required to participate.

Permission is required to participate.

Anyone can j oin, read, write, and commit.

Only authorized participants can write and

commit.