Fundamentals of Blockchain Trust: Four Things You Need to Know About Data Transparency

Web3 is the new paradigm of the Internet that enables people to collaborate in unprecedented ways. This new wave of technology allows users to create a more transparent way of sharing information to control their digital lives and private data.

Transparency is one of the core design principles of Web3. The way blockchain data is displayed will directly affect the way users read the data. Web3 users need to be able to understand and distinguish the source of the data or content.

More specifically, transparency of data sources has proven to be fundamental to ensuring that trust is maintained between parties, while building strong relationships with users, communities and stakeholders.

Transparency ensures that every transaction that occurs on the blockchain is visible to all network participants and can be audited by anyone at any time. This also makes blockchain data highly secure and transparent.

Topics that will be discussed in this article are:

  • Blockchain history data
  • blockchain address
  • blockchain browser
  • Oracle

Fundamentals of Blockchain Trust: Four Things You Need to Know About Data Transparency

Blockchain history data

When we’re talking about data, it’s especially important to be clear about where it comes from, especially in the Web3 world. If you don’t know where the information you’re viewing comes from, it can be difficult to understand it. In order to distinguish blockchain data from other data, it must be transparent.

To ensure data is easily distinguishable, developers and designers use the Gestalt similarity principle, with consistent color fonts and shapes as classification criteria. In simple terms, the Gestalt principle is defined as an analytical method that perceives an entity as a unified whole, rather than multiple parts. Through this principle, we can define multiple parts as a whole, thus simplifying the transaction process.

When it comes to blockchain data, in order for users to trust the information they see, it is important to ensure that everything they see is clear and consistent. If there are inconsistencies or misinformation in it, there’s a good chance they’ll be bothered.

Fundamentals of Blockchain Trust: Four Things You Need to Know About Data Transparency

blockchain address

A blockchain address is a unique identifier for a transaction on a blockchain network, which can be thought of as an email or a phone number, except that it is quite secure. Generally, the blockchain address can be queried from two places:

  • The sender’s wallet, usually the one that generated the transaction
  • Contract, where transaction data is stored

When you send cryptocurrency from one address to another, the process is encrypting it with a public key, and only someone with the private key can decrypt it and get the funds for the transaction.

You need to understand that the private key is only available to the owner and who can perform transactions using that key, while the public key is the digital signature used to verify ownership of the private key.

Use extensibility plugins such as extended tooltips to provide more historical data by hovering or clicking on a blockchain’s data points to clearly identify where the data is in the blockchain.

Fundamentals of Blockchain Trust: Four Things You Need to Know About Data Transparency

blockchain browser

Blockchain browsers provide precise details of a user’s past transactions and are therefore crucial for Web3 users. When using a blockchain explorer, you need to pay attention to:

  • Confirm button function
  • Choose a transparent and decentralized blockchain browser
  • Use the blockchain explorer as described in the user instructions

Blockchain explorers are an important tool for developers looking to make their applications more secure and transparent. Developers can see any changes made to their applications through the blockchain explorer, and they can also see if there are errors in them by checking all the transactions that have been made in the system.

Fundamentals of Blockchain Trust: Four Things You Need to Know About Data Transparency

Oracle

Blockchain oracles are a way to link smart contracts to real-world events.

A smart contract is a piece of code that lives on the blockchain and performs actions based on events that occur in reality. For example, smart contracts can be written to execute when someone buys something from your store. Through smart contracts, funds will be automatically transferred from the buyer’s wallet to yours.

But what if the confirmation transaction happened? You need to check if the item is paid before actually making the transfer, and that’s where oracles come in. An oracle is a piece of software that provides access to information outside the blockchain and reports to smart contracts what is happening outside the blockchain.

Oracle Transparency allows users to see how oracles work and how accurate they are, helping them make better decisions about which oracles to use. An oracle can submit verification signatures from other oracles on the Ethereum blockchain to prove its answer, as any incorrect answer will be rejected by the smart contract, so there is no single point of failure in the process.

Demonstrating oracles is an effective way to ensure mutual trust, while also allowing users to make informed decisions.

Fundamentals of Blockchain Trust: Four Things You Need to Know About Data Transparency

in conclusion

Data transparency is key for any blockchain-based application to ensure the validity of shared data. Since many applications rely on specific functions in the blockchain, the accessibility of blockchain data is critical to all parties.

Therefore, users should be aware of individual blockchain addresses and their associated browsers and oracles. Data transparency can best be described as an “informed approach” to blockchain usage by any participant in a given network.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/fundamentals-of-blockchain-trust-four-things-you-need-to-know-about-data-transparency/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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