Block Chain is a peer-to-peer distributed and decentralized ledger system in which the data is encrypted and transactions are verified by users or nodes. Block Chain is the basis for the rising Crypto Currencies and the disrupting technology is being leveraged for many other purposes. Block Chain is preferred for the many advantages of the technology such as:
Illinois Block Chain initiative, Department of Homeland Security (DHS) SBIR Block Chain, and Blockchain in Trucking Alliance (BiTA) are some of the initiatives by the public and private agencies to invest and research in Block Chain. Delaware Block Chain Initiative is one of the largest efforts for the development of hundreds of Fortune 500 companies.
Block Chain is being embraced by many enterprises including SAP, Deloitte, IBM, UPS, Vanguard, and other organizations to develop product and asset life-cycle management systems. Data-centers are popping up across the country just to manage the Block Chain Encryption. Financing, trading, hospitals, shipping, real estate, and several industries are relying on Block Chain for future development.
Encryption is the key criteria for the Block Chain transactions. The ledger system is distributed and the risk of hacking is high. However, the records are stored with all the users and hence any discrepancies can be traced. Robust applications to develop the decentralized system with secure protocol and application layer are needed.
Block Chain is public ledger where all transactions are ordered and recorded with a unique transaction identification. The sender, receiver, and transaction details are encrypted and are not revealed to the public. All users in the system have a copy of the ledger and whenever a new transaction is confirmed, the records at all the users are updated. Thus, the transactions of the Block Chain are irreversible and final. The encryption can be confirmed by numerous computer algorithms and mathematical calculations. Several hardware and software set up is required to perform the iterations required to confirm a transaction.
Block Chain Encryption has enabled verifications of the transactions without revealing the underlying details or with zero-knowledge-proof confirmations. The transactions are confirmed as done but the details of the transactions are kept hidden. The transactions are encrypted in SHA-256 (Secure Hash Algorithm 256 bit) format.
Unlike hash which is a one way function, encryption is a two way function and can be accessed only with a key. The private key is unique for every user and the details are thus hidden in the encrypted transactions. The cryptographic hash is encrypted in every transaction along with the transaction id, hash of the previous block, and the actual message. Key management is crucial in the Block Chain Encryption as it is the main component of the network.
Key management systems are developed for Block Chain encryption. Users have multiple keys assigned and many private keys can be generated across accounts. For corporates and large set ups, hardened keys are suitable due to enhanced security.
Every Block Chain system have their own key management protocols and external software for key management are available to integrate with your Block Chain. For identity management and financial transactions, special measures are applied.
Advancements in Block Chain key management has led to developing enhanced algorithms such as Elliptic Curve Digital Signature Algorithms (ECDSA). Non-standard crypto improves the security for Block Chain Encryption. Private key seeding, scalability, and multi-signature capabilities are some other considerations for Block Chain Encryption.
The rise in Crypto Currencies in the market also has increased the demand for Block Chain Encryption. Hacking the ICOs and the networks has led to losses in billions around the world. Enterprise key management and ability to handle multiple Crypto Currencies such as Ethereum and Bitcoin are needed.
Users or nodes in Block Chain actively participate and contribute to the Block Chain Encryption. Every confirmation increases the blocks and all users in the network are informed of the decision.
General rules for validation, consensus, and changes are available to the users. Users are often unaware of the underlying security but the Block Chain Encryption is taking care of the data.
In supply chain management, users can confirm the shipment and track the data in real time. Stocks management has a huge advantage with Block Chain Encryption, as the users across the world are verifying the transactions. Any misconfirmed data can be cross checked with all the remaining nodes in case of any errors.
Most open source nonpermissioned ledgers are leveraged by the Bitcoin and Ethereum networks in which any user can join and confirm the transactions. Enterprises prefer permissioned ledgers for data privacy and security in which the users have control over who can join and can authorize or deny permissions.
Achieving consensus over financial institutions across the worldwide users is challenging. Banks and stock operators are embracing Block Chain Encryption as an efficient alternative to traditional database and servers.
Block Chain Enryption result in transparent systems in which data loss can be avoided. Users stay powerful in the Block Chain as they have control over the system. Data management, risk mitigation, index data distribution, life-cycle event management, and other processes can be achieved. Enterprises are seeing cost savings with the cryptographic security features of the Block Chain Encryption.