Blockchain is bases on Distributed Ledger technology, which provides transparent distributed ledgers or databases in which to record transactions. They are called ledgers because they can be used for sequentially storing debits and credit transaction for a financial application, such as BitCoin. They are open and provide transparency to the transaction placed on the chain, however the associated data (payload) is encrypted and only the hash code of the data is visible. The name Blockchain comes from the visual explanation of a steel chain, but instead of links there are chains of connected blocks. Once a block is placed on the chain it cannot be removed, same as a longitudinal ledger or record.
Bitcoin's Blockchain is unpermissioned, anyone can use it. Validators, called “Miners” are paid for validating a transaction in a untrusted world, the Internet. A Closed HDLS could be a permission system, using selected members of the system to validate the block. As an example, consider a group of hospitals entering a trusted ledger systems, their membership would pay for the support of the networks. Members would pay and chose their own validators to insure quality and nonrepudiation. Quality and authentication would be provided via a consensus algorithm.
The following is a list features and functionality of BC/DL
- Signed transactions
- Immutabe
- Robust Security, PKI, Encryption
- Longitudinal records providing data provenance
- Private consensus
- Build in auditing
- Secure Peer-to-Peer
- Nonrepudiation
- Distributed database
- Smart Contracts - for billing, device provenance, Device Mgnt
- AutonomousDevices
- Transparency
- Time stamping
- Continuity of Care
- No Single point of failure
- Reconstructible Chains if a node fails
- Peer-to-Peer communication
Speaker, Blockchain Symposium June 9, 2016