What is Blockchain?
Blockchain is an immutable, shared ledger that facilitates the tracking and the record keeping on a business network. Any asset can be tracked within the Blockchain network; whether the asset is tangible like land, house and cars. The network can also keep track of intangible assets like patents, branding, intellectual properties, copyrights, etc. Virtually anything of value can be tracked using this technology. This makes the underlying assets secure and reduces the overall administrative costs. Blockchain is a transformative technology that has a lot of potential and will end up influencing almost every area of our life; whether it’s finance, logistics or healthcare, this technology can be applied. One of the most profound applications of Blockchain is with cryptocurrencies; basically Blockchain is the ecosystem that supports cryptocurrencies like Bitcoin. This shows how powerful Blockchain can be.
Why is Blockchain important?
Every business highly depends on information; actually businesses are run on information. The faster and more accurate the information can be received, the easier it becomes to do business and make relevant decisions. Blockchain is an ideal technology for this because it provides immediate access to information. The information is shared in a transparent manner and the ledgers can be accessed by any authorised member within the network. The Blockchain network can be used to track payment, orders, accounts, production, distribution and other business operations. Within the network all the members see the same information in a single view, so all the details of the transaction can be seen end-to-end and this brings about greater confidence making operations more efficient.
Key Features of Blockchain
Blockchain is made up of a distributed ledger technology. The ledger is immutable and all the members within a particular network have access of all the information. Since the ledger is shared, information is recorded only once and this eliminates any duplication efforts that can take place on other more traditional business networks. Since it is immutable, no single individual is able to change or tamper with a transaction once it has been recorded into the shared ledger. If a transaction that was added to the network had an error, then a new transaction will have to be added to the network to reverse the error and both transactions will be visible. Smart contracts is another key aspect of the Blockchain technology. Smart contacts are protocols within the network that are intended to automatically execute various actions based on the terms of the contract. Smart contracts have defined conditions and can use to execute a wide range of operations like corporate bond transfers.
Benefits of Blockchain Technology
Traditional record keeping and information management systems have very many drawbacks like wastage of time duplicating records and a constant need for verifications from third parties. These record keeping systems are very vulnerable to cyber-attacks and fraud. Limited transparency often slows down the process of data verification. With the usage of IoT, transaction volumes have drastically increased and this has increased the difficulty of using traditional systems. The extra processing results in slowness and drag, reducing the overall output of a business. Contrary to this Blockchain has set itself apart as the most reliable and secure system when it comes to information management. It is extremely secure and accurate as any new data added into the system will have to be verified by all the members. Verified transactions are also immutable because they are usually recorded permanently and no one within the system can delete the record, not even the administrators. Since the networks can only be accessed by members, you can always rest assured that you are receiving timely and accurate data. In conclusion, Blockchain is a very efficient, secure and reliable technology that can be applied in many areas.