The blockchain is a modern buzzword. Distributed ledgers, the word of art underlying blockchain technology, offer an incredible new way to transact business without a fixed authority. Unfortunately, according to HubSpot’s research, the blockchain is also one of the most confusing emerging technologies for a wide audience out there. To explain how it works and give you more ChronoBase service insights, we will describe blockchain basic principles.
What is the blockchain?
The blockchain is known as distributed ledger technology. It is similar to a distributed database, that millions of computers (or ‘nodes’) around the world have access to and are constantly updating.
‘The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.’
— Don & Alex Tapscott, authors Blockchain Revolution (2016).
Harvard Business Review defines it as an open distributed ledger that can record, for instance, transactions of virtual coins between two parties efficiently and in a verifiable and permanent way. The ledger consists of linked batches of transactions known as blocks, and an identical copy is stored on millions of computers that make up the network. Each change to the ledger is cryptographically signed to prove that the person transferring virtual coins is the real owner of those coins.
No one can spend their coins twice because once a transaction is recorded in the ledger, every node in the network will know about it. The idea is to both keep track of how each unit of the virtual currency is spent and prevent unauthorized changes to the ledger. Consequences can’t be underestimated: no one can cheat the system, that leads to the total confidence between users.
How does ChronoBase use a blockchain?
To overcome data safety and retention issues on the luxury watch market, ChronoBase experts decided to create a project utilizing a blockchain technology — a decentralized database — as its cornerstone. This database is built on Ethereum, an open-source, public, blockchain-based distributed computing platform and operating system.
Ethereum technology enables to register transactions on a decentralized contracts basis (like blockchain) without any possibility of downtime, censorship, fraud or third-party interference. ‘Decentralized’ means that there is no central storage. All servers in the system are connected to each other.
ChronoBase system generates an Ethereum-based digital certificate. As this certificate is mathematically declared, the system checks and controls fulfilment of conditions automatically, without any human interference.
This principle makes any manipulations with the data next to impossible — once information is recorded into the system, it remains safely guarded. Any user can register the watch, confirm its origin as well as check ownership and service history instantly, without any juridical procedures and with confidence in data integrity.
ChronoBase records are mirrored in Ethereum blockchain, which guarantees integrity and capacity to pass any type of auditing. The database is public and universally accessible, with an enhanced level of data confidentiality, which safeguards the owner’s identity.
Why is it so important?
Due to the Ethereum-based blockchain system, luxury watches manufacturers and dealers now have an opportunity to maintain relations with their clients and fight off the black market of stolen timepieces. Prior to the invention of ChronoBase, there was no possibility to digitally verify any information on watch provenance and service history.
Moreover, luxury watch owners are now protected from theft and fraud. They are able not only to register a timepiece and confirm ownership with the original documents but also search for lost or stolen watches in a few clicks.
Everything that is impossible to achieve in a centralized database can now exist in a decentralized and secure form. The key about blockchain is trust. When integrity and information safety and long-term retention are of paramount importance, blockchain technology is a perfect fit.
How does it affect you?
ChronoBase database is open to the public to verify the authenticity and obtain information. This is important for dealers and insurance companies. The platform also allows manufacturers to reach out to clients to push marketing messages and maintain relationships.
Project key advantages are in the simplicity and the clear operating by the owners — there are no traps or hidden data usage.
For watch owners and buyers:
- ChronoBase protects you as the owner of a watch: it records your ownership and confirms the authenticity of your watch. If you are buying — ChronoBase helps to avoid stolen or fake items, or find a better deal!
- You can check any watch online by its reference and serial numbers. If the watch is found in ChronoBase — it was registered by the owner and checked by an authorized service center. If there is no record, that is a good reason to visit a service center to verify authenticity.
- Records in a secure ChronoBase database will prove that your watch is lawfully owned. If you are offered a stolen watch, the application will warn you and you may contact the owner.
- The ownership is recorded in the blockchain. This means that with ChronoBase you do not need to carry paper documents. You will always have access to the latest status of your collection.
For watch sellers and manufacturers:
- ChronoBase protects sellers from unfair competition and makes the whole luxury watch market more transparent.
- The whole provenance is retained in the blockchain. The buyer can easily verify whether a watch is new or second-hand, based on the recorded date of the first sale.
- If a person owns a private key in ChronoBase, a pawnshop can be confident that a watch belongs to that person.
- Possibility to track sales of dealers to third-party marketers, knowing the actual sales location/country for each item.
- Instant verification for insurance purposes, resale, or pledge, including service history and the date of the first sale, respecting the privacy of the owner.
ChronoBase already has more than 100,000 luxury timepieces in its database and it’s only a beginning.
ChronoBase will start its TIK token presale in July. The team invites you to take part in the creation of this unique product. Once the token sale is completed, the TIK token will be listed on major cryptocurrency exchanges to ensure its liquidity.
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