Owing to the development of bitcoin, blockchain has gained popularity. This innovation, however, is not confined to the financial sector. A block chain technology is made up of encrypted blocks that are connected by networks. In 2008, Satoshi Nakamoto created the first Blockchain, which used a Hash cash-like mechanism to add blocks to the system without requiring a trusted third party. Blockchain, a fast-evolving financial technology, is transforming the way people do business, click here.
It is considered a new foundation for global transactions, blockchain is gaining traction as an enabling infrastructure for bitcoin and other cryptocurrencies. A blockchain is a networked, immutable, and decentralised monetary database.
The main benefit of Blockchain technology is the decentralized trustworthiness it provides: (1) it eliminates the need for an intermediary to enable operations, (2) it reduces the cost of trading, and (3) it reduces the time it takes to trade.
Blockchain’s main attributes
- Redistribution: Without the intervention of a third participant, each defendant on the Blockchain can access the database and review the account activity. The key benefit of this chain is that it may be replicated throughout a dispersed network. As a result, if a criminal or oppressive government entity wants to go unnoticed, they must update all versions of the Blockchain at the same time.
- Confidentiality of clients: Transactions are conducted between accounts on the Blockchain. On a Blockchain, each user has a unique alphanumeric identifier that they can choose to keep private or share with others. Users can communicate with the Blockchain network using the generated address, and there is no longer any centralized authority to keep users’ confidential data. This method protects part of the user’s privacy.
- Mechanism of agreement: Because there is no single trusted agent in the entire network, a consensus process is implemented. The group’s purpose is to agree on how each record should be authenticated. By controlling more than 51% of the financial reporting nodes in the overall network, it is conceivable to create a semi-report. As a result, any displacement is easily detectable.
Relevant Blockchain Concerns
Blockchain has a lot of potential, but it faces a lot of obstacles that could prevent it from becoming widely used. The Blockchain is a decentralized community system in which anyone in the community can read financial data and update the database with new information. The system’s foundation is openness and the lack of central supervision, which has negative consequences and limits its application.
- Surveillance: Blockchain’s security mechanisms can be overdone. Although the main advantage of blockchain is that it is decentralized, users must still put their trust in the software and tools that they use to access it, and these might be places of vulnerability.
- Legal constraints: Blockchain technology might be used to prohibit governments from imposing justified restrictions on freedom of expression, such as when websites are used to store or distribute unlawful content.
- Availability: It is difficult to operate blockchains on portable devices, which may prevent blockchain access in areas where android technologies are the primary mode of Internet access.
- Responsibility: Authorities should ensure that blockchain platforms are not responsible for any knowledge kept on them.
- Confidentiality of the participants: Although transactional logs only keep limited information on individuals, obligatory identification schemes may infringe on the right to privacy websites.
The article has published a cautionary statement against the promotion of blockchain technology as a means of circumventing surveillance. The freedom of expression organization addresses some of the concerns associated with the adoption of blockchain technology that have been released in paper. It also recommends initiatives that legislatures, government agencies, and tech businesses should do to ensure that human rights are maintained when this technology is used.