Blockchain Concepts

To understand how these systems work and to be able to design and build solutions that will work for a business application, it is necessary to understand some of the underlying concepts.

The first thing to understand about a Blockchain solution is that it is never a standalone solution used by any single entity. It necessarily involves at least two entities who will transact with each other, but in reality, the value of the solution is higher as the number of entities transacting increases.

The second important aspect of a Blockchain solution is the existence and the need to manage multiple copies of the application and its data, which are synchronized in real-time. Traditional systems are designed with a “single source of truth” approach to data, where there is only one master copy that needs to be kept updated.

The third important concept is the need for consensus. In traditional applications, there is a single primary owner of the application that decides how transactions and data should be processed without necessarily taking any inputs from other participants. In a Blockchain solution, collaboration and consensus are key as the system will not work without them.

The key concepts that should be understood when thinking of a Blockchain solution are listed below. CLick on each one to learn more.