Trust is a risky judgment after investigating future hazard between two parties; in the current digital world, delineating trust entails authentication and attaining permissions; to put it simply, the ultimate objective of this process is to know whether you are whom you say you are and whether you are able to do what you want to.
In Blockchain technology, private key encryption provides a powerful ownership tool that meets the needs of authentication. Possessing a private key means ownership. This key will prevent the person from sharing too much information even he/she would like to. Handing over unnecessary information can make the user’s information security vulnerable against hacking and attacking.
Authentication will not suffice on its own. Having permission to do certain activities, having enough money to conduct the transaction properly, etc. requires trust making, and that, in turn, demands a distributed and peer-to-peer network. A distributed network will reduce the chance of breaking down and failing of a centralized organization.
This distributed network should be executable in an accounting system, in a way that it should have a place to store data and records. Furthermore, its security should be guaranteed. Confirming transactions shows that protocol’s predetermined regulations are being enforced and implemented by the whole network.
Confirmation and the permission issued through this mechanism allows for interacting in the digital world without the need for a third parties (mediums). Today, entrepreneurs in the field of industries praise this development worldwide. International competitions in the digital domain are unexpected, new, powerful, and admirable. Blockchain technology is often known as an infrastructure for one layer of the transaction on the internet, and it is the basis on which cryptocurrencies are founded.
In fact, the idea of encrypting keys and public ledger, enjoying high security, encourages users to recognize this field of technology. Therefore, many states, IT companies, and banks seek after and want to implement this layer of the transaction.
Authentication and issuing permission, which are of utmost importance in digital trades, are the result of applying Blockchain as an infrastructure for digital trades and encryption.
This idea can be implemented in case of any necessity for a reliable record system.