Baku, Azerbaijan, Oct. 20
By Anvar Mammadov – Trend:
Blockchain technology in Azerbaijan should be implemented in several stages, Nijat Asadli, manager of the Digital Trade Hub of Azerbaijan, told Trend.
He said that this technology is the most relevant today, and its structure was also used to create the Digital Trade Hub of Azerbaijan.
“We studied the use of blockchain technology when creating the procedure for payment and transfer of goods through the Digital Trade Hub of Azerbaijan,” he said. “However, blockchains differ in type, and we decided to apply the structure of the so-called private blockchain.”
In general, the expert said that the introduction of blockchain technology in Azerbaijan should start with the application of private blockchain.
“I personally think that if we want to fully use the blockchain technology in Azerbaijan at the state level, we need to implement it in three stages,” he said. “The first stage involves the use of private blockchain in state structures and various companies. Next, it is necessary to form a consortium of private blockchains for fast, transparent and effective cooperation between state structures. Only after all the structures start using private blockchain technology, it will be possible to start fully using the technology.”
A blockchain is a decentralized and distributed digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network.
A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data.
Information held on a blockchain exists as a shared - and continually reconciled - database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
A private blockchain network requires an invitation and must be validated by either the network starter or by a set of rules put in place by the network starter. Businesses who set up a private blockchain, will generally set up apermissioned network. This places restrictions on who is allowed to participate in the network, and only in certain transactions. Participants need to obtain an invitation or permission to join.
The access control mechanism could vary: existing participants could decide future entrants; a regulatory authority could issue licenses for participation; or a consortium could make the decisions instead. Once an entity has joined the network, it will play a role in maintaining the blockchain in a decentralized manner.
