Blockchain technology is a system that records information in a way that it is difficult for anyone outside the system to change, hack or cheat the system. Blockchain a digital ledger of transactions that duplicated and distributed across the whole network of the computer systems on the Blockchain. Invented by a person or a group of people with the name Satoshi Nakamoto in 2008. That served as the public transaction ledger of the cryptocurrency bitcoin.
The identity of the inventor of Blockchain and the name is still unknown which is kind of mysterious.
The use of Blockchain in bitcoin made it the first cryptocurrency to solve the double-spending problem. That didn’t need any trusted authority or a central server. Later, other companies also started using Blockchain technology as these technology-led companies to new technologies. Benefit businesses through greater transparency, enhanced security, and easier traceability. One great characteristic of Blockchain is that its transaction ledger for public addresses is open to viewing which increases transparency.
Blockchain uses a hash function that used to map data of arbitrary size to fixed-size values. Hash function returns hash values and hash functions differ from the concepts that numbered in terms of data integrity. The highest valued cryptocurrencies like Bitcoin, Ethereum and Cardano use a blockchain because it is convenient and transparent to everyone.
Let us discuss some applications and advantages of using blockchain in your business.
Decentralized cloud storage like Storj is effective in storing information and data. In the cloud that encrypted, easily implemented, highly performant, exceptionally economical, and resilient. The founder of Storj Shawn Wilkinson told VentureBeat that “Simply using excess hard drive space, users could store the traditional cloud 300 times over”. Much like how you can rent out your home or room on Airbnb. Getting the assurance of safe and secure storage of your data sounds good for a company. Because the data is easy to access and secure.
Supply-Chain Communications and proof of provenance
The use of blockchain technology would provide digitally permanent, auditable records that show stakeholders. The state of the product at each value-added step. On Edelman Digital Phil Gomes has said that “Most of the things we buy made by. A single entity but by a chain of suppliers who sell their components (like graphite for pencils). A company that assembles and markets the final product. The problem with this system is that if one of these components fails. The brand takes the brunt of the backlash. This problem solved the use of blockchain. We can keep an eye on the state of the product at every step.
Blockchain aids as an application that compensates employees because it has its roots in cryptocurrency. If your company has international workers. Then paying regular wages to the international workers using bitcoin in the payroll process could save many costs. Also known as Bitwage, it is the world’s first Bitcoin-based payroll service. It shall help in minimizing the fees related to international money transfers. The time it takes to transfer the funds from one bank to another. In business saving time and money is one of the most important things.
First coined in 1993 the term ‘smart contract’ became really popular in 2013 after the release of the Ethereum Project. Smart contracts self-automated computer programs that can carry out the terms of any contract. With the use of smart contracts, companies will be able to bypass regulations. Minimize the costs for a subset of our most common financial transactions. And the best thing about Smart contracts is that they will not be breakable. The ethereum-enabled internet-of-things platform used by companies. Like Slock that allows customers to rent bicycles. They can unlock a smart lock after both parties agree on the terms of the contract. We can see the prospects of growth of this contract in many other places in the days to come.
There are open blockchains that are more user-friendly than other traditional ownership records. Traditional ownership records require physical access to view whereas open blockchains are easy to access. Do not require you to be physically present. However, some changes been made later as early blockchains. Did not require any permissions and controversy has arisen over the definition of blockchain. From Computerworld, Nikolai Hampton said that “many in-house blockchain solutions will be nothing more than cumbersome databases,". "without a clear security model, proprietary blockchains should be eyed with suspicion."
Although blockchains initially made to be used as a distributed ledger for cryptocurrency. Many other businesses have seen its prospects and started to understand its essence. Being used by cryptocurrencies, smart contracts, financial services, videogames, energy trading, supply chain, anti-counterfeiting, health care, domain names and many other places. We see that almost everywhere blockchain technology being used. All the businesses seem to be benefitting from it. So if you have not yet tried it then how about dipping toes into something new?
Want to know about Bitcoin Vs. Ethereum. Link over here.