Confused whether to use Blockchain or not? In an era where companies, as well as individuals, are facing challenges ranging from data management to security, the implementation of Blockchain technology has emerged as a clear savior!
For many people, Blockchain is simply the technology that supports crypto-coins. The technology has many applications besides crypto-coins that continue to provoke mixed reactions around the world. Put simply, Blockchain is a kind of digital book that uses complex encryption to ensure permanent and tamper-proof storage of records.
Financial institutions have already taken note of the capabilities of the technology, given the rate at which most of them are exploiting it as a way to secure and track ownership of assets, as well as accelerate transactions. In addition to enabling fast and secure transactions, some companies are using technology to track the movement of products and assets as part of supply chain management.
Data banks in operation are now managed and controlled by the central authorities. Blockchain networks, on the other hand, cannot be managed by any central authority. The control is distributed in such a way that any computer connected to the network participates in the decision making process. Digital accounting technology has already given rise to peer-to-peer networks used for various operations.
The executive implementation of Blockchain should therefore be a middle ground for organizations, as technology will go a long way in replacing intermediate situations. For example, to send money, you need a bank or financial institutions to complete a transaction. However, with the implementation of Blockchain technology, this should be a thing of the past, as a way to speed up transactions.
Blockchain executives in various industries are slowly adopting the technology of ledger in an attempt to increase efficiency and service delivery. The fact that the technology provides infrastructure for the construction of innovative applications, in addition to crypto-coins, has already been implemented in several health sectors to finance the automotive space of the technology. It has been thinking about this that we have separated for you some examples of how Blockchain is being used in different sectors and why it is important. Check out:
Why is Blockchain technology important?
Four key attributes clearly show why Blockchain technology is important and why Blockchain CIOs need to be more receptive when it comes to implementation.
Consensus: In order for any form of consensus to be agreed in a Blockchain network, all participants must agree first. What this means is that Blockchain technology has the potential to prevent a select group of people from manipulating data to their advantage.
Provenance: In a time when maintaining a tamper-proof paper trail is essential, but requires the implementation of Blockchain technology. Digital accounting technology enables all network participants to know where an asset came from and how ownership has changed over time.
Immutability: The tamper evidence aspect should be one of the greatest attributes that executives of Blockchain should take into consideration when it comes to digital accounting technology. Any information encrypted in a block cannot be tampered with when registered in a book. If the details in a block are incorrect, a new transaction must be performed to revert the error without deleting the contents of the previous block.
Purpose: Blockchain networks provide transparent platforms where people can go and determine the ownership of an asset as well as the completion of a particular transaction.
Taking into account the attributes mentioned above, it is clear that Blockchain technology provides the highest levels of transparency that Blockchain CIOs can be proud of. Less supervision, cost savings and reduction of intermediaries are some of the other benefits that make Blockchain desirable in the digital world.
Blockchain CIOs need to understand what Blockchain is and how it works to make good use of its resources. To begin with, Blockchain executives will have to agree on the decentralization of their business models and processes. The projects powered by accounting technology are poised to deliver business value that is worth pursuing at all costs. That said, Blockchain CIOs need to be more aggressive in implementing the technology. Following advantages in the various sectors explain the importance of Blockchain in depth.
This should be one of his last concerns about the Blockchain. We must remember that the Blockchain works like a chain. Both blocks and nodes (computers) are constantly interconnected. When a block processes the validation of the transactions it has collected, it is also validating all previous blocks, making them stronger and more reliable.
So, the closest path to network intrusion, you would first need to access more than half of the network computers, called the 51% Attack. But even then it would not be possible to steal all the coins from the wallets.
The person or group of people capable of executing this attack could interfere with the activity of other miners and interfere with the validation of the transactions. Already the cases of scams in portfolios do not happen because of failures in the Blockchain, but due to external factors, like the lack of security of the exchanges and the frauds in sites.
So always be aware of the security conditions when choosing an exchange and what information you provide about your account on other platforms.
In the health area, it is essential to have access to information about patients, the safety and transparency of these data are essential to keep a person’s life safe. After all, how do you know which medicines to use or not? But just as we rely on a bank to store and record information about our money, so do medical records, so we need a third party to store this information.
However, how do you safely store all the medical information of several people for a lifetime? Not to mention that this same information will be stored in different places, such as hospitals and clinics. Blockchain is an applicable solution to this issue. In addition to ensuring that your data is securely stored, you can have access to all of your information in one place.
The solution of the traditional financial institutions to maintain the privacy of each user is limiting the access to information of each part. In the case of Blockchain, the existence of a document that records all transactions publicly contradicts this method, but it does not prevent you from having privacy.
The solution to maintaining this privacy is by keeping public keys anonymous. That is, your account name will not identify who you are. The public can see that someone is making a transaction for someone else, but without information in the transaction that binds to someone.
At the same time that the internet brings many facilities, it carries problems. One of them is piracy. Movies, music, games and many other products are published on the Internet without the author’s consent, which harms him in many ways, especially financially. In order to combat piracy, Blockchain can be used to ensure that artists are paid fairly and that you receive authentic content.
A streaming platform that guarantees a transparent relationship with musicians. Everything happens instantly in Blockchain: every time you hear a song on the platform, second it is registered in Blockchain that is responsible for paying the royalties by its name.
The concept of crypto-coins is that business happens peer to peer, that is, end to end, without having intermediaries. Since Blockchain can deliver this format, there are no borders or bureaucracies for you to sell and buy the coins. Doing international transactions is not such an expensive and time-consuming process with Blockchain.
In addition to revolutionizing money exchange, Blockchain is also an innovative way to deliver sustainable energy. LO3 Energy wants to revolutionize how energy can be generated, stored, purchased, sold and used through its platform, Exergy.
Everything happens through a mobile application: it is a market place where discussions take place on how to generate and use sustainable energy from local trades.
Another solution is to make solar energy more accessible. Without government intervention, users who own solar panels can sell credits to others who do not have access or structure to generate solar energy. Translating the name of Blockchain does not say much about what this technology is, but refers to how it works.
Blockchain works, as it can be translated, as a chain of blocks. Each block represents a number of transactions, you can identify them by a combination of numbers. An example of how block identification is done was when a hard fork occurred in Bitcoin, Bitcoin Cash.
All those people who had bought the bitcoin before the new crypto-media appeared, won the same amount of coins in Bitcoin Cash. They identified which was the last block validated before Bitcoin Cash came out, and only the previous ones would get the coin.
In addition, miners are available at all times. Blockchain works in a universal way, so there is no time limitation to do some transaction. You do not have to wait to sell or buy coins.
Transparency is one of the most valued qualities of this technology. All transactions that take place within the network are registered and cannot be changed, making room for possible fraud and false transactions.
The rule is clear that everyone has access, but no one has control, meaning all users can see the transactions happening inside Blockchain, but nobody can manipulate the information. Account names preserve the user’s identity, but it does not prevent anyone from being able to relate to someone according to their activities.
The more (or less) conventional way would be to collect this information on paper. However, registering in this way would make it difficult not only to collect millions of signatures, but also compromise the authenticity of the document. After all, how do you prove that a signature really belongs to a person?
For this reason, there is a need to include the Blockchain in the political sector. Since this technology collects information that cannot be changed and duplicated. There are several advantages to this initiative, the reach to collect more signatures is greater, it is a secure record, it is easier and more transparent.
Therefore, a Blockchain system eliminates the risk of relying on a single organization, reduces overhead costs and transaction fees, and cuts off intermediaries and third parties.
As we talk about the topic “Decentralized Technology”, it is the computers that are responsible for making Blockchain work. They work like the employees of a bank. For each block, there are a number of transactions. Computers are responsible for approving this block.
To validate the block, computers need to solve in 10 minutes a complex mathematical problem, generating the proof of work. At the end of this task, if it is successful, the computers receive an amount in bitcoin coins.
This process is called mining. A person or a group invest in high performance computers to solve math problems and collect the coins they earn. In short, Blockchain transactions are organized in blocks. These blocks are connected to the previous ones by means of the hash, the code that identifies each block. The whole of it all forms the “chain of blocks” or as we know best, Blockchain.
Miners are responsible for keeping this chain together, collecting the transactions that are taking place and organizing them in blocks. Thus, the miner needs to make a calculation to maintain the connection between the blocks. Contrary to what many people believe, banks are not against this technology. In fact, many of these organizations recognize that Blockchain is a new form of financial relationships.
The technology is still complex and few people understand what Blockchain is and how it works. But because it has so many advantages and promising features, knowing about Blockchain has become the interest of many people around the world. Several aspects make Blockchain a revolutionary technology, especially for its transparency. It can not only favor financial relations, but also political and social relations.
Blockchain technology has the potential to improve various operations regardless of the application industry. While the technology is still in the early stages of development, Blockchain CIOs can still exploit it, since it is very promising. However, to ensure successful implementation, Blockchain executives will have to ensure that an organization really needs the technology in the first place.
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