Explain the Key Elements of Blockchain.

Key Elements of Blockchain

1. Distributed ledger technology 

  •  All network participants have access to the distributed ledger and its immutable record of transactions. 
  •  With this shared ledger, transactions are recorded only once, eliminating the duplication of effort that’s typical of traditional business networks 

2. Immutable records 

  •  No participant can change or tamper with a transaction after it’s been recorded to the shared ledger. 
  •  If a transaction record includes an error, a new transaction must be added to reverse the error, and both transactions are then visible. 

3. Smart contracts 

  •  To speed transactions, a set of rules called a smart contract is stored on the blockchain and executed automatically. 
  • A smart contract can define a condition for corporate bond transfers, include terms for travel insurance to be paid and much more.