Blockchain created Bitcoin 10 years ago, but today’s cryptocurrency virus is better than its parents. Especially this year, there has been a sharp rise in the price and scheme of Bitcoin.
Blockchain has been in the spotlight for the last few years, but there can be three categories that can be divided. One of them is a niche community that understands, breathes, and loves blockchain.
They are probably people who are already in the tech community or somehow already working in the tech community. Second, it is a group of people confused about what it does and how it works.
Third, an armored group of articles, news articles and videos on blockchain basics, but that can be as ignorant as the second group.
This article aims to open the eyes of the latter two groups on this technology that the media is not silent about. Why do you make so much fuss about blockchain and its potential? Why receive media mileage earned in the past year?
What can companies get at it? These are some questions that this article is trying to address.
What exactly is a blockchain?
Blockchain is a distributed ledger that records transactions in real time in real time with its simplicity. This is a protocol for exchanging values over the Internet without an intermediary.
A decentralized, secure and immutable system that generates transactions in near real time and provides players with unmatched flexibility, speed, and security when performing certain operations on the blockchain.
Immutability (irreversible readability) makes changes once established almost impossible, increasing the reliability of data integrity, and reducing the chances of fraud and corruption.
There is also a type
A public blockchain is a blockchain that can read and write on the platform if it can show evidence of work. Bitcoin is probably the most popular use case for blockchain. A digital currency that is created and traded in a decentralized way, with no one verifying or controlling transactions between participants. The software behind Bitcoin is open source. This means anyone can join the blockchain network and trade electronically.
Private blockchain is a place where only selected players have the right to join the network and create a closed-loop environment.
For example, a collaboration between a blockchain company and a stock exchange that uses blockchain technology and the latter provides the shares of a private trading company for customers.
In this way, only the shareholder is allowed to access, edit and read the data. Restricted authorizations provide a higher level of security.
On the other hand, allow blockchain to provide selective transparency when the selected node is allowed to access or consent to the transaction. For example, if there is a consortium of 10 banks on a block-driven platform, all banks can freely communicate and trade or share bills without having to give other banks permission to access data sharing I can.
The rise of hybrid blockchain
Interestingly, the flexibility of blockchains has also created another type of blockchain that has created a huge topic in business operations.
A hybrid blockchain is a combination of public and private leisure that allows the governing body or network members to identify and determine which transactions remain open and which transactions are to be accessed by a smaller group of members.
This feature makes hybrid blockchain technology good for enterprise use. Using a hybrid blockchain, financial institutions can keep financial transactions private and can be verified by an invariant record of the public blockchain situation.
With hybrid blockchain solutions, businesses and governments can build different applications across different transactions without compromising sensitive financial information.
What are the benefits of blockchain?
Blockchain has many benefits and ways to reduce the burden of operations across the industry and improve business efficiency. Not only is it decentralized and immutable, it not only increases transparency, it can also simplify all current models across the business.
Various types of industries such as finance and health are not well organized, and several units / staff / departments maintain their own databases, with different nature of systems preventing data sharing and analysis.
It will take time. However, the blockchain can act as a platform (or ledger) by multiple stakeholders. This simplifies the complexity of managing multiple systems for each entity.