He said that the blockchain technology has recently become a global phenomenon and in connection with the use of this technology, new mechanisms are being formed.
“Pilot projects on interbank transactions based on blockchain technology are being implemented in many countries,” the minister noted. “Such technologies are used in system registries, in software solutions for processing data in e-signature. We believe that this area should be widely studied in Azerbaijan. As is known, an agency on innovations has been created under the ministry, and a number of goals, including the development of startups and IT projects based on the use of blockchain technologies were set before this agency.”
Blockchain is a way of storing data, or a digital registry of transactions, deals, and contracts. Its main difference and undeniable advantage is that this registry is not stored in one place, but distributed among several thousand computers around the world.
The principle of operation of the blockchain is quite simple - digital records are combined into "blocks", which are then linked cryptologically and chronologically into a "chain" with the help of complex mathematical algorithms. Each block is linked to the previous one and contains a set of records. New blocks are always added at the end of the chain.
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