Blockchain and its Practical Applications
“Blockchain” is a very popular term that people know of without understanding its entire meaning. The “block” in blockchain refers to a data set. Each block contains a cryptographic hash of the previous block and transaction data. The “chain” is a peer-to-peer ledger held together with cryptographic controls. By design, a blockchain is resistant to modification of its data. The open, distributed blockchain ledger records transactions between two parties efficiently and in a verifiable, permanent way.
You may ask, what makes blockchain better for businesses? For one, each member of the blockchain network must have access privileges. Information is shared only on a need-to-know basis. Blockchain is also immutable. Consensus is required from all members and all validated transactions are permanently recorded. Even a system administrator can’t delete a transaction. Transactions made within blockchain are secure, private, and efficient through transparent technology. (Investopedia)
There are many possible applicable use cases for blockchain. For example, IBM shares that blockchain makes food supply safer and smarter. This technology makes suppliers, retailers, and consumers feel more confident in the quality of their food supply. It also enables food companies to have a visibility and a trust level that was not accomplishable previously.
Blockchain has also transformed trade finance by establishing trust with trade partners. IBM emphasizes that blockchain solutions enable collaboration between different companies—even competitors—as they work on a common goal. Blockchain enables companies in different industries such as financial services and healthcare to serve their customers and run their businesses more efficiently.
As appealing as blockchain seems for data management, its implementation is likely to introduce complexities. The best approach today would be to position blockchain as a supplement to existing data management solutions, and then explore different possible use cases.
We understand how blockchain could play an integral role in how you manage your data. Contact ustoday to learn how we can help.