How Blockchain prevents fraud?

How Blockchain prevents fraud

How Blockchain prevents fraud?

The blockchain framework prevents fraud in a number of ways thanks to its inherent features. First, transaction data on this distributed ledger is shared across all nodes of a given network. This means that the data is constantly visible to network users and can therefore not be tweaked without detection.

Transactions that are added to the chain cannot be modified or removed. Participants on a given network work on consensus basis to approve transactions. When they agree on the validity of a transaction, they time-stamp it and add it to the chain.

This makes the chain a permanent record containing the history of every transaction ever carried out. This beats the traditional supply chain model that is mostly too long to track and at times not transparent.

There are permissioned blockchains that usually offer access to specific validated members. This provides an additional layer of protection against fraud especially for business organizations.