Business

Blockchain – What It Is & How It Works – Pt. 1

Using The Power Of Blockchain In Different Industries

Blockchain is not a name that many will be familiar with. The name Bitcoin will be a little more familiar. The ‘blockchain’ is the technology behind Bitcoin.

Bitcoin is one of the more popular and first cryptocurrencies in the world. People transact and use Bitcoins online.

No central bank or agency controls its use.

Blockchain, as the name suggests is a chain of transactions.

It is an open ledger of accounts representing the transactions of the cryptocurrency.

There are certain unique characters associated with blockchain which makes it useful for other purposes too.

Let us see what goals people use blockchain for other than cryptocurrency transactions.

1. What Is Blockchain?

Before we look at how we can use blockchain for purposes other than the distribution of cryptocurrencies we should understand what blockchain is.

It is probably the next biggest thing in digital technology. The scope for using blockchain is unlimited.

The Blockchain is a scattered data ledger.

People input data in the network with the consent of other members. The system is self-sustaining.

There are no centralized agencies that control the network. This is what increases the reliability and security of blockchain technology.

Nobody can enter data without the consent of other members. There is no way anyone can correct or delete the data once opened.

It makes the system absolutely reliable.

Every new entry in the chain forms a new block added to the blockchain.

Because of the nature of secure, decentralized data storage the technology is suitable for many applications.

2. The Blockchain Advantage

When we want to use the strengths of the blockchain in different apps, we should know the merits of this technology. We should understand whether this technology can add any value to the existing system.

The main thing about blockchain is that the other members of the group verify each entry. It means that every entry is genuine.

There is no way anyone can make a fake entry. There is no centralized agency that can be compromised to accept a fraudulent transaction.

Transparency is the next advantage. Everyone in the chain can see each entry. It means that there is total transparency about the data in the chain.

This increases trust in the system. As a result, some industries have started leaning on blockchain digital transformation.

In all other applications, the data storage is in a centralized location. In the blockchain system, the data spread across all the blocks in the chain.

There is no one place that hackers can target to steal the data. The data is entirely safe from being stolen. It becomes ideal for storing personal details.

There is no central agency that has to verify each transaction. There is no one individual
to check and approve the transactions.

This saves a lot of money which would ‘normally’ be paid to an agency. It also saves a lot of time.

● All members should authorize every transaction. Hence no fake entries.
● Nobody can edit or remove any data. You can rely on all the entries.
● There is no centralized authority to verify or authenticate. There is less chance of manipulation.
● All entries are visible to all members of the group. There is complete transparency.
● All blocks in the chain contain data. There is no central storage for  hackers to attack.
● There is no waste of money and time as you don’t have to get a centralized agency to authorize each transaction.

Though blockchain application development immediately brings Bitcoin and cryptocurrencies to everyone’s minds, it is suitable for many other applications. But before you look at the various opportunities, you should first make some preparations.

3. Explore The Usage

Being a relatively young technology, you need to get experts to give an in-depth knowledge of blockchain technology.

Only after this can you see whether you can use it in your business.

You can use the people who are explaining the technology to prepare a proposal which you can present to any ‘top brass’ for approval.

4. Form A Core Group

Once you have the support of senior management, you should form a core group.

This group should contain people from different departments in your company. There should be both technical and business experts. You should also bring outside experts into the group.

The group will help to bring feedback from different departments about the technology that can be helpful in their area.

They can find out how it will help in taking the business forward. You should find out where it will provide maximum benefit.

5. Identify A Test Area

You might suddenly find yourself overwhelmed by the number of places where you can use the technology.

But you should focus on one area where the benefits will have ‘maximum effect’ while generating the smallest risk.

You should only try the technique in that department at first.

Once you have identified the case in point, you should draw a roadmap for the project.

And after forming a team for the project, you should also analyze the effect it would have on the present working environment.

It is better to implement the system in a small way at first. You must test and familiarize
yourself with the system before going full steam ahead into any project.

Pt II in this comprehensive guide to Blockchain will appear tomorrow morning Taiwan time.

 

About the author:- Harikrishna Kundariya is an India based marketer, and developer in fields involving IoT, ChatBot & and Blockchain.

He is the designer, and co-founder, and Director of eSparkBiz Technologies, a Mobile App Development Company.

His website can be viewed here with his Twitter and Facebook social media accounts the tip of his online presence.

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