What Role Does Blockchain Play in Ensuring Secure Sales Transactions ?
Blockchain technology plays a pivotal role in securing sales transactions. Here’s a simplified explanation:
Digital Ledger System: Blockchain is like a digital notebook that keeps a record of all transactions. The unique thing about this notebook is that it’s not stored in one place but distributed across many computers.
Cryptography for Security: Each page (or block) in this notebook has a special code (cryptographic hash) that links it to the previous page. This, along with a timestamp and transaction data, makes it very hard for anyone to change or delete a page once it’s been added.
Types of Blockchains: There are two types of these notebooks - public and private. Public ones, like Bitcoin and Ethereum, can be accessed by anyone and are maintained by a network of users. Private ones are controlled by a single authority and only certain people can access them.
Transparent and Secure: One of the biggest benefits of blockchain is that it provides a secure and transparent way to keep records. Because the notebook is distributed, it’s very hard for anyone to tamper with the data.
Smart Contracts for Automation: Blockchain also allows for ‘smart contracts’ which automate transactions, reducing the need for middlemen and minimizing human error.
Digital Signatures for Authenticity: Lastly, each transaction on the blockchain is secured with a digital signature that verifies its authenticity.