Characteristics and Functionality of the Blockchain Technology
Keywords:
Blockchain technology, Consensus mechanisms, CryptographyAbstract
New technologies push the process of the digitalization. Among these technologies, blockchains are one of the tools, that provide a significant potential to disrupt and improve traditional manual-based processes in businesses and organizations by automated execution of transactions. Research for the article was performed by a literature review of secondary data. The article outlines five important blockchain principles, and relevant blockchain mechanisms as well as the requirements to add new blocks, provided certain pre-defined conditions based on implemented consensus mechanisms are met. Thereby, chances and limitations for a wide-spread adoption of blockchains are discussed. In summary it can be said, that the blockchain technology provides a wide range of opportunities to improve manual processes in a wide range of businesses and organizations. Due to the complexity and lack of trained staff, blockchain technology is still far from becoming mainstream.
Key words: Blockchain technology, Consensus mechanisms, Cryptography
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