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New Normal, Digital Transformation, Industry 4.0
Trust | Transparency | Traceability
Data Democratization and Blockchain
Can Data Democratization* and Blockchain technology go hand in hand?
Blockchain can enable secure collaboration among multiple parties from a set of decentralised data. Some also called Blockchain is Democratisation of data as everyone with the proper permissions has access to that data on a blockchain.
Blockchain’s unique characteristics enable- Decentralised trust via data transparency, which enables collaboration
- Verifiable identities of participants and goods to authentic items and prevent fraud
- Business processes automated in virtually real-time
- Highly secure data that is tamper-evident, meaning if a bad actor tampers with a set of data, all blockchain participants will be aware of that.
With Digital transformation is around the corner in almost all businesses, personal and transactional data has become one of the most significant economic assets. We created 2.5 quintillion data bytes daily in 2020. This is humongous data, and as more and more data is generated and gathered, it throws significant privacy and safety challenges. In such a scenario of decentralised data, maintaining data privacy and safety becomes prime importance.
In this series, we will address the newer and evolving dimension of Blockchain protocols and platforms.
Algorand is a blockchain company that tries to provide decentralised efficiency, privacy and security all at a time. Algorand is a generalised blockchain platform created in 2017 by Silvio Micali an Italian computer scientist, professor at the Massachusetts Institute of Technology
The Vison statement Algorand is a “world where everyone creates and exchanges value efficiently, transparently, and securely”.
Algorand uses a modified Proof of Stake platform that is public permissionless, provides instant confirmation also highly secure. Algorand’s transaction throughput is on par with large payment and financial networks, ensuring full participation, protection, and speed within a genuinely decentralised network with blocks finalised in seconds. And Algorand is the first Blockchain to provide immediate transaction finality. It has no forking and no uncertainty. Three main components of consensus mechanism 1. Block Proposal 2. Soft vote and 3. Certify the vote. In the Block proposal, random participants are selected to propose our transactions blocks; next stage, a completely different group of participants are chosen to reduce the block to one block. Lastly, the third group of participants are selected to certify the block. Thus it provides a consensus level security.
First, the adversary does not know which users he should corrupt. The users who are called to certify a new block are secretly and individually selected.
Second, when the adversary realises which users are selected, it is too late for him to benefit from attacking them. Those users have already fulfilled their responsibility in the consensus protocol. In the next round of block certification, a new set of users are chosen privately.
In each stage, random participants are selected privately using a verifiable random function. Since participants are selected privately, tertiary data, which Ps and Nodes to compromise by the time participants of each round are revealed the transaction completed as the network grows its challenging to get network attack. Algorand is getting popular in the supply chain, NFT and DeFi.
In Algorand, the power is in the hands of the users holding a stake. Every user receives an amount of rewards proportional to their stake for every block committed to the chain. We do so to encourage users to join the Algorand platform and accelerate our path to decentralisation.
Conclusion: Blockchains platforms are raising the bar in preserving data security and will continue to distinguish themselves as the leading solution in safeguarding sensitive information online. Users on a blockchain will reap the benefits of living a simpler and more secure digital life that reduces fraud and once again instils trust, transparency and traceability online. To sum up, the trust required between stakeholders to share information is enhanced by blockchain technology’s intrinsic security and privacy mechanisms. Blockchain technology hasn’t quite hit revolutionary appeal yet, but it seems poised to impact several sectors/areas over the next few years. In times ahead, both blockchain and cloud computing would play a vital role in changing enterprises’ work environments and how traditional computing works.
*Data democratisation means that everybody has access to data, and there are no gatekeepers that create a bottleneck at the gateway to the data.
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