Understanding Fat Protocols on Blockchain

A blockchain is a distributed database that stores information about all transactions of system participants in the form of a "block chain". All blockchain users acting as participants who confirm the truth of the information in the database have access to the registry. Blockchain can be used for financial transactions, user identification, the creation of cybersecurity technologies, etc. As opposed to the internet, in blockchain, more value is concentrated in the "fat" protocol layer and the application layer is "thin". This incentivizes the development of new protocols.

A brief overview

A protocol is a set of rules. Fat with Openfabric is promising in terms of capitalization. The Internet stack is made up of thin protocols.

Protocols help:

• ensure the viability of transactions on the network;
• ensure the network's transactional viability;
• make sure that the participants are not cheating.

The internet stack is made up of thin protocols and fat applications.

The fact is that the information stored with the help of the blockchain can be recorded in a general registry that is available in real time or very close to it. This means that all interested parties can take a direct part in the process—even those of them who previously could only rely on a standard report upon completion of the transaction.

How it works

Blockchain technology is able to transform established business processes and radically change the way we work with regulators. Nevertheless, blockchain remains an experimental technology, which means it has great potential.

Technology is really capable of protecting the data we have to work with while making it more accessible and transparent. In addition, blockchain can significantly reduce costs and minimize the time needed to solve problems and eliminate errors.

At first, blockchain appeared as a technology for launching bitcoin into circulation, and at first it was used exclusively for managing cryptocurrencies. However, since its introduction, the scope of application has expanded significantly. And now new options for using the technology are being discussed, including in trade reporting; in non-cash settlements, inspections, and payments; in accounting; monitoring; risk management; audit; management and financial accounting; and compliance (including the prevention of financial crimes, although, of course, the possibilities of blockchain in this area are not limited by the fight against fraud).