Blockchain is a revolutionary new approach to managing transactins. Through its unique distributed nature, it has the potential to radically transform the way we do business by simplifying how we track goods, services, money, and data.
How Does Blockchain Work?
A blockchain is a virtual, public ledger that records everything securely and transparently. It acts as a ledger, which can capture information about suppliers, partners, customers, goods, services, money, or any type of structured (or unstructured) data.
Blockchain brings two important advancements to data management: data is recorded and digitally signed; and then shared through a broad network. While simple, these two innovations allow for fast, precise, and transparent exchanges with revolutionary possibilities.
Here’s how it works: once data has been recorded inside a blockchain, it becomes connected to the data in front of and behind it. This makes it (essentially) impossible change, meaning that data can only be added (appended) to the network. The data is then shared with many (or all) of the other peers in the network. Instead of using a central entity to manage the chain, blockchains use peer-to-peer networks further securing the irreversible, permanent chain, and preventing any block from being altered. When someone joins the network, they get a full copy of the chain.
So what happens when someone creates a new block? That block is sent to everyone on the network. As each transaction occurs, it’s encoded into a block of digital data and uniquely signed or identified. Each node can verify the block to ensure it hasn’t been tampered with.
In layman’s terms, blockchain is a record-keeping tool that makes it easier and safer for businesses to work together over the internet. This data is then held in a network of computers, owned and run by the users themselves.
The Benefits of Blockchain
The benefits of blockchain for businesses are far reaching. Here’s why your organization might want to consider blockchain.
One of blockchain’s benefits is its ability to reduce cyber risks and attacks, particularly those aimed at financial institutions.
Streamlined Business Processes
By streamlining and automating business processes with blockchain, transactions are completed quicker and more efficiently. Since record-keeping is performed using a single digital ledger that is shared among the users, you don’t have to reconcile multiple ledgers.
Thanks to blockchain technology, transaction histories become more and more transparent. Using blockchain, it’s possible to create distributed services that are able to compete with centralized, and more established competitors. This allows customers to take control of their own data and migrate away from well-established institutions with their strict policies. For example, consider the disruption caused by crypto currencies: these block chain based solutions have allow customers more control over their own financial decisions and opened new opportunities for trading and exchange.
Industries Disrupted by Blockchain
More and more industries realize the potential of blockchain. As blockchain continues to develop and gain traction, affected industries are forced to adapt. Here are a few industries that are bound to be overhauled by blockchain technology in the near future.
The most popular example of blockchain technology is Bitcoin. Bitcoin is a cryptocurrency which uses a blockchain to keep track of ownership of the currency. A cryptocurrency is a type of exchange, such as the US dollar. However, it’s digital and uses encryption techniques to verify the transfer of funds. Unlike banks that assist in transactions with traditional currencies, the blockchain allows the free transfer of cryptocurrency through a decentralized setting. While cryptocurrency eruption of the past few years has brought blockchain into the forefront of a wide variety of industries, establishing new currencies is just the beginning.
Real estate transactions require endless paperwork. Blockchain technology can store these documents and transaction records securely with less work and less cost. The technology can create smart contracts that release funds only when the terms and conditions are met. A smart contract, also known as cryptocontract, is a computer program designed to verify the conditions of a contract and take an appropriate action when the terms have been completed. Because all parties must describe the terms, smart contracts can provide additional security and transparency.
Supply Chain Management
Since the supply chain industry is cumbersome and full of constant back and forth between suppliers, providers, and clients, Blockchain can manage any form of exchange, agreement, or tracking process. Because of the distributed nature of the ledger, it is possible to read data rapidly and efficiently which can enable more intelligent analytics and reporting.
Blockchain technology can provide a much more transparent and reliable framework for us to track and measure assets. adopting blockchain technology, accountants and accountancy firms will be able to offer their employers and their clients the safety and security of all records
Blockchain technology has the potential to allow patients to control their own medical data, and efficiently make it available to providers amongst their provider networks.
The United States has experienced its fair share of challenges when it comes to collecting and counting votes. By casting votes as transactions, we can create a tamper-free electronic record. This allows everyone to verify that no votes were changed or removed.
The Bottom Line
Blockchain is more than just a buzzword. It’s coming to disrupt everything. Wherever data is stored, there’s an opportunity for blockchain to be involved.
DVO Consulting’s Blockchain Solutions
DVO Consulting is an emerging leader in the Blockchain Solution Services marketplace. Through internal expertise and external vendor relationships, we provide evaluation solution services to organizations that want to adopt blockchain solutions.
We evaluate the market place, provide impact analysis, detailed functional review, and enable your business to evaluate if blockchain solutions are right for your organization’s goals.
Our engineers provide design, development, testing, implementation/deployment of blockchain solutions. We are partnered in with leaders in this technology developing the most cutting-edge advancements in the blockchain solutions space.