Blockchain provides a mechanism that enables two parties to exchange value directly and securely over a peer-to-peer network. What makes Blockchain is transformational is the exchange of value occurs directly between the two parties with no intermediaries such as a lawyer, credit card company, bank etc.
Figure 1 depicts the basics of a blockchain transaction flow.
- Step 1: Person A initiates the transaction to send digital currency to Person B. This could just as easily involve the transfer of records, contracts or any other authorized form of value.
- Step 2: The transaction request ...