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What is Blockchain for Business?

What is Blockchain for Business?

HARIDHA P265 14-Dec-2022

Businesses can benefit from using blockchain when doing transactions with one another. To increase productivity, establish trust, and reduce friction, distributed ledger technology allows permissioned individuals to access the same data simultaneously. With the help of blockchain, a solution may also quickly grow and scale, and many of them can be modified to carry out various duties in different industries. 

Consensus: Shared ledgers are updated only once the transaction has been approved by all parties that are concerned.

Replication: As soon as a block, which is the record of an event, is accepted, it is automatically created in the ledgers of all channel participants. Every network partner sees the same 'trusted reality' of the transactions and shares it.

Immutability: Because more blocks may be added but not removed, every transaction has a permanent record, fostering greater stakeholder trust.

Security: Blocks can only be created and accessed by authorised entities. Access permissions are only granted to reliable partners.

Blockchain: What is it?

Blockchain is a ledger system that employs an open, distributed record to keep track of transactions, which can include trading in cryptocurrencies, NFTs, personal data like medical records, or voting or property records.

Blockchain's past

Before we delve into the specifics of how blockchain accomplishes this, let's discuss its past. Peer-to-peer electronic payments were introduced to the globe in October 2008 by the enigmatic creator of bitcoin, Satoshi Nakamoto.The first blockchain in history was created by his cryptocurrency. It didn't take long for people to start customising the bitcoin software for various uses because it is open source, allowing anybody to see, reuse, and adapt the code behind it.

How Do Blockchains Operate?

Although there are various ways to build up a blockchain, Harvard Business Review outlined five criteria that all blockchains should follow.The first thing to note is that all blockchains employ distributed databases, which allow each user in a blockchain to have access to the entire database, including its transaction history.Due to this openness, users can independently check any information they require and carry out transactions without the necessity of a middleman.Second, all exchanges of information or communications take place between peers. 

In a blockchain, each user keeps data and communicates with other users directly.Intermediaries and centralised storage facilities like banks are no longer required because to this technology. Users, also known as nodes, are equipped with all the knowledge necessary to evaluate other users.Third, despite the fact that blockchains are transparent, each user connected to a blockchain can maintain their anonymity. Each user has a special '30+ character alphanumeric address' that they use in place of a name in order to safeguard their identity. 

With their blockchain address, users have the option of sharing their identity or keeping it private.Transactions are also verified using the alphanumeric addresses. The phrase 'mining' in relation to bitcoin may have crossed your mind. Except for that one incident, no one 'mines' bitcoin by sifting through the dirt in search of a hard drive containing the currency.

Blockchain advantages

If blockchain is essentially simply another method of organising records, why then are people becoming so excited about it? Be at ease! Here in this section of the paper, we discuss blockchain's advantages and its potential to revolutionise society.

The Importance of Blockchain in the Future

Such a large amount. And it's acceptable if you don't fully comprehend blockchain or aren't yet prepared to start integrating it into your business strategy. Before blockchain becomes widely used, it will take many years and support from a wide range of sectors. Additionally, as more blockchain applications are developed by larger enterprise organisations, it's critical to keep an eye on the evolving technology, even though we don't advise SMBs to worry too much about it just yet.

The most rewarding technology, blockchain, has yet to realise its full potential, so keep that in mind the next time you find yourself falling into a deep despair because you didn't buy bitcoin when it was hot.

A passionate writer, blogger, language trainer, co-author of the book 'Irenic' and an enthusiastic learner. Interest includes travelling places and exploring.

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