What is Blockchain?
Blockchain is a decentralized, immutable, shared ledger that facilitates the tracking and recording of information within a particular business network. Most people know Blockchain as the technology behind cryptocurrencies like Bitcoin, Ethereum and others. However, Blockchain is more than that, it can be used to track any asset within the network; whether the assets are tangible like cars, house and land. The network can also be used to record and keep track of other intangible assets like intellectual properties, patents and branding. Virtually anything that has value can be tracked using the Blockchain technology. Blockchain is such a transformative technology, it has almost an endless potential and will end up influencing almost every aspect of our life; whether it’s in education, finance, logistics, catering or healthcare, this technology can be applied. One of the most profound application of Blockchain has been with cryptocurrencies. The Blockchain technology actually supports the whole cryptocurrency ecosystem.
Why is Blockchain important?
Every business highly relies on information in this age; actually businesses are run on information. This means that the better the information management system is, the more efficient the business will be. Blockchain is the perfect technology that makes this possible and in recent years, we have seen many businesses applying this technology in their information management systems. It is transformative and it is completely changing the business landscape. It facilitates the managing and sharing of the information in an organized manner within the organization. This makes every activity within a business more effective; from production, tracking and processing orders, distribution and even marketing. Since all the members within the network have access to the same information, there is a single view of truth and all the details of the transaction can be seen end-to-end and this brings about greater trust and confidence. This makes all the business operations more effective. This is the same principle that makes cryptocurrencies very effective, secure and reliable.
Key Features of Blockchain
Blockchain is basically made up of a distributed ledger technology. The ledger is also immutable and all the members within a particular network have an unlimited access to the information. Because the ledger is shared among all the members, information can only be recorded once and this eliminates the risks of editing, changing or tampering with the information in one way or the other. In case a certain transaction had an error, it can’t be deleted; what will happen is that another transaction will be added to reverse the error. Both transactions will be seen and this makes everything transparent. Smart contracts are also another distinguishing features of the Blockchain technology. Simply put, smart contacts are protocols within the network and they are intended to automatically execute specific actions and processes based on the terms of the contract. They usually have defined conditions and can be used to execute a range of operations like corporate bond transfers.
Benefits of Blockchain technology
Traditional record management systems have many problems like need for a third part verification, vulnerability in terms of security and other issues. This means that they are vulnerable to issues like cyber-attacks or fraud. Limited transparency makes the process of data verification difficult and lengthy. With large volumes of data, the traditional systems are very inefficient and this slowness and drag reduces the overall performance of a business. Contrary to this, Blockchain has proven itself to be the most accurate, reliable and secure system. It is extremely accurate since any new data added into the system will have to be proven by all the users connected to that particular network. In conclusion, Blockchain is a very efficient, secure and reliable technology that can be applied in many areas. Just like it has done in the cryptocurrency world, this technology will indeed transform every aspect of our life in the coming years. If you want to become one of the visionary businesses producing new value, rewriting the rules of your industry and changing the way the world works together, get in touch with us right away!