In a narrow sense, blockchain is a chain data structure that combines data blocks in a sequential manner in chronological order. At the same time, it is a distributed ledger that uses cryptography to ensure that its content cannot be tampered with or forged. In a broad sense, blockchain technology is a new distributed infrastructure and computing paradigm that uses block chain data structures to verify and store data, uses distributed node consensus algorithms to generate and update data, uses cryptography to ensure the security of data transmission and access, and uses smart contracts composed of automated script codes to program and operate data.
Characteristics of blockchain
1. Decentralization
Due to the use of distributed accounting and storage, there is no centralized hardware or management agency, and the rights and obligations of any node are equal. The data blocks in the system are jointly maintained by the nodes with maintenance functions in the entire system.
2. Openness
The system is open. In addition to the encryption of the private information of the parties to the transaction, the data of the blockchain is open to everyone. Anyone can query the blockchain data and develop related applications through the public interface, so the information of the entire system is highly transparent.
3. Autonomy
Blockchain uses consensus-based norms and protocols (such as a set of open and transparent algorithms) to enable all nodes in the entire system to exchange data freely and securely in a trusted environment, so that trust in “people” is changed to trust in machines, and any human intervention does not work.
4. Information cannot be tampered with
Once the information is verified and added to the blockchain, it will be stored permanently. Unless more than 51% of the nodes in the system can be controlled at the same time, the modification of the database on a single node is invalid. Therefore, the data stability and reliability of the blockchain are extremely high.
5. Anonymity
Since the exchange between nodes follows a fixed algorithm, the data interaction does not require trust (the program rules in the blockchain will determine whether the activity is valid by themselves), so the counterparty does not need to make the other party trust themselves by publicly disclosing their identity, which is very helpful for the accumulation of credit.
In cross-border e-commerce and international trade, blockchain technology is increasingly used. For example, the cross-border supply chain industry often involves many entities, including logistics, capital flow, information flow, etc., and there is a lot of complex collaboration and communication between these entities. In the traditional model, different entities each keep their own supply chain information, which is seriously lacking in transparency, resulting in high time and money costs, and once a problem occurs (false claim, fake goods, etc.), it is difficult to trace and deal with. Through the blockchain, all parties can obtain a transparent and reliable unified information platform, which can view the status in real time, reduce logistics costs, and trace the entire process of production and delivery of goods, thereby improving the efficiency of supply chain management. When disputes occur, it also becomes easier to provide evidence and trace.