Blockchain Comes Under Data Privacy Scrutiny | Arent Fox – JDSupra – JD Supra

Blockchain Comes Under Data Privacy Scrutiny | Arent Fox – JDSupra – JD Supra

Blockchain Explained

Blockchain is an immutable and decentralized digital ledger, which records transactions taking place in a peer-to-peer network. In simple form, blockchain is a database that contains data within blocks, which are all connected. Nothing within this database can be deleted or modified after it has been validated and added, but more data can be added to the database.

Blockchain enables and facilitates the process of recording transactions and tracking assets in a given blockchain network. A common misconception of blockchain is that all transactions are anonymous, when in fact, they are typically pseudonymous. Although blockchains and the transactions can be anonymous, most blockchains typically operate as public ledgers, which enable the ability to track transactions or assets to a given transaction or source.

While there are numerous blockchain platforms, perhaps the most recognized blockchain platforms are the Bitcoin blockchain and Ethereum, the blockchain for Ether. The Bitcoin blockchain is credited with sparking the adoption of blockchain as it sheds light on the potential of decentralized finance. However, Ethereum is the blockchain platform that has emerged as the catalyst for innovation because of its ability to enable the building of “smart contracts” and “distributed applications” (DApps).

A smart contract is a self-executing agreement stored on a blockchain with the terms being written in computer code. Each smart contract is programmed to execute certain actions upon the completion of the identified terms. If the terms of the smart contract are not completed, the smart contract will not execute. Smart contracts are vital