Blockchain

by Michael Fabing
2 minutes
Blockchain

Blockchain is a decentralized, distributed, immutable digital database that use cryptography to secure transaction.

The blockchain is a distributed ledger system (or a decentralized database) that keeps records of digital transactions in an encrypted manner. Rather than having a central administrator using a traditional database, (banks, governments and accountants), blockchain uses a network of replicated databases, synchronized via the internet and visible to anyone within the network.

The decentralized approach reduces the moral hazard of having one administrator who is able to modify and delete data at its own discretion, providing increased trust to the system. Moreover, decentralized databases offer an increased credibility by using a hashing algorithm, that forces the users to link the most current data block to previous data blocks which consolidates the history of transactions in an immutable way.

Nowadays, the origin of the timber is tracked manually. Their are technology solutions currently used in the tracking process in Peru. However, it is based on a central database, where data can still be easily manipulated.

WTP would state an upgrade of these tool as the blockchain technology allows for storing this information in a public book, tamper proof and accessible to all, allowing the consumer to verify the legal origin of the wood he acquires.

Additionally, WTP's platform would handle the entire payment processing system through smart contracts that guarantee that the information relevant to the tracking of the wood is registered by the user as a prerequisite for payment.

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