Introduction to Blockchain Technology
The introduction of blockchain and bitcoin in 2009 opened doors to different industries—allowing real-world use and demonstration of the power of blockchain technology.
Today, blockchain has somehow changed the way we perceive and solve problems. The benefits of this technology are seen by key opinion leaders and innovators from different sectors.
What is Blockchain?
Blockchain first came to light with Satoshi Nakamoto’s whitepaper on “Bitcoin: A Peer-To-Peer Electronic Cash System”.
The value of blockchain comes with its ability to share data instantly, better transparency and enhanced security, and true traceability among many others. Moreover, blockchain networks are immutable—this means that no data can be reverted by any means once it is written.
By definition, blockchain refers to the technology that is used to create a decentralized database that is id designed to revolutionize the way we interact with the digital world. It is often referred to as a distributed ledger that is immutable, transparent, and secure.
In a blockchain, records of all transactions or any digital event executed are shared among and can be viewed by the majority of the participants in the network. Notably, anything of value can be recorded in the blockchain as transactions.
Currently, there are four types of blockchain networks: public, private, consortium, and hybrid.
How Does Blockchain Technology Work?
There are several use cases for blockchain technology and the most famous one is via cryptocurrency. Here, a cryptographic proof is utilized instead o third-party entities being trusted to execute the transactions over the internet; thus, each transaction is protected through a digital signature.
Since blockchain is decentralized, no central server or system is used to keep the data in a blockchain. Instead, it is distributed over computers and participants of the blockchain network—they are called Nodes.
Moreover, these Nodes connected to the network help with the execution and validation of the transactions.
Blockchain Technology Benefits
Efficiency and Speed
Blockchain solves the time-consuming processes in different industries and its automation maximizes efficiency. This automation eradicates human-based errors, ensuring accuracy.
Enhanced Security
Blockchain uses advanced security, which is perfect for record-keeping systems. Transactions that are recorded on the blockchain are verified via a consensus method—encrypted and using a hashing method.
True Traceability
Through the use of blockchain, the supply chain industry becomes more transparent. This makes it easy to trace all items—avoiding several problems like loss of goods, theft, etc. As experts say, blockchain technology helps in tracking the origins of items.
Immutability
Every record on the blockchain can’t be changed or deleted. The transactions are time-stamped; hence, there is a permanent record. Because of this, the information can be used over time to track transactions and ensure security and transparency in the records.
Decentralized Structure
The decentralized structure of the blockchain has advantages as well. Being in a trustless network, each member has access to the data and has the exact copy of data in the distributed ledger.
Suffice it to say, blockchain indeed offers a new kind of technological feat for the digital world. Harness blockchain technology in your business through our ecosystem at Blockchain Commodities—Hippo Wallet, Riverex, RiverPay, Enifex, and Chain Core.
To know more, visit Blockchain Commodities’ website or follow them on Twitter, Discord, and Instagram.
