Blockchain

Distributed: Trusted decentralized shared immutable temper-proof/evident ledger - once transactions (orders, payments, account tracking,...) are recorded can't be altered (WriteOnceReadMany - WORM): shared system-of-record (SSOR) among the members of the network - members share a common view of the truth - no need to reconcile the disparate ledgers. Transactions can't changed; it can only be reversed with another transaction
- Each transaction is put into a block
- Each block is connected to one before and one after it to create: a bockchain
Permissioned: members of the network has access rights: confidential info is shared on a need-to-know basis
Secured: Consensus is required among the members of the network to create/update/delete transactions
Peer-to-peer:Each member of the network can act as both publisher and subscriber
Each node can send/receive transactions to/from other nodes - data is synced across the network
- Lower transaction cost : Eliminates or reduces paper processes, speeding up transaction times and increasing efficiencies
- High velocity process
- Security and trust

Need for efficient, reliable and secure for conducting and recording financial transactions
Issues in Current transactions systems:
- Instruments of trust: Minted Coins, paper-money, letter-of-credit, banking systems : to protect buyers and sellers
- Innovations: Telephone lines, credit-card systems, Internet, mobile - improved convenience/speed/efficiency of transactions - eliminating/reducing distance between buyers and sellers
- Limitations of current systems:
  - duration between transaction and settlement can be long
  - need for 3rd party validations - intermediaries increase the inefficiency
  - fraud, cyber-attacks add to the cost/complexity of doing business - if a central system is attacked/compromised it exposes all the participants of the network
  - credit card systems: merchants must pay high-cost of onboarding (with paperworks) and vetting process
  - everyone the world do not have bank accounts - so parallel payment systems are used
  - limited transparency and inconsistent information

Internet Of Things (IoT)
Autonomous objects:
- Fridges - with order management built-in
- Cars - deliver themselves

Consensus: all participants should agree for a transaction to be valid
Provenance: participants know where the asset came from and how its ownership changed over the time
Immutable: participants can't temper a transaction after it is recorded in the ledger. If a transaction is in error, a new transaction must be used to correct the error and bother corrected and correcting transactions should be visible
Finality: Single shared ledger - determines the ownership of the asset or the completion of the transaction