Blockchain can be defined as a chain of blocks that contains information. The technique is intended to timestamp digital documents so that it’s not possible to backdate them or temper them. The purpose of blockchain is to solve the double records problem without the need for a central server.
Blockchain can enhance the management and trading of ESGT by providing transparency, traceability, and efficiency. It enables transparent tracking of credits’ origins and ownership, streamlines transactions through smart contracts, and creates a global marketplace accessible to all. Blockchain also simplifies verification and compliance processes, incentivizing sustainable practices and contributing to climate change mitigation efforts.
Blockchain technology is considered highly secure due to its decentralized nature, cryptographic techniques, consensus mechanisms, immutability, and transparency. These features make it difficult for malicious actors to alter data or compromise the integrity of the network.
Blockchain hashes are unique cryptographic identifiers assigned to each block in a blockchain. They are deterministic, ensuring consistency, and collision-resistant, minimizing the chance of two different inputs producing the same output. These hashes are crucial for maintaining data integrity, security, and immutability within blockchain networks.