A Legal Guide To TECHNOLOGY TRANSACTIONS A COVID-19 Update…

Blockchain technology is also used in the creation and execution of smart contracts. A smart contract is a self-executing contract that obviates the need for third parties to a transaction. It does this by turning a contract into computer code that automatically executes the contract and transfers assets and then enforces obligations negotiated under the contract. You may opt to use blockchain technology for its cybersecurity benefits. Blockchain applications provide strong security for networked ledgers, but are not invulnerable. Cyber-attacks often target centralized databases because they can infiltrate the entire system, and distributed ledger technology offers greater protection because an attack on one or a small number of participants does not result in system failure. Uncompromised members of a blockchain are able to maintain ledger integrity and availability and continue transactions. Additionally, blockchains transparency makes it less vulnerable to corruption via malware, because each participant holds an identical copy of the ledger, which makes it easy to detect modifications to the historical record. Blockchain technology may provide IoT devices to authenticate each other and ensure that their intercommunication is valid.

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