The last “magic word” when talking about digital business processes of companies is Blockchain, even though it is a technology that is just beginning its implementation, and few professionals are clear about what applications it may have.
Those who have heard of this term have usually done it with the famous virtual money Bitcoin, but the applications of Blockchain are many more, and they will touch us more and more closely.
The Blockchain is a set of technologies that allow maintaining a distributed, decentralized, synchronized, and very secure registry of the information that computers and other devices work on; that is, it would fulfill the function of a public registry in digital operations since it allows uniquely identify each person and device and store and trace that identification at all times. In any case, like other technologies, it will be common to use it even if we still do not know in detail how it works, as happens, for example, with the MP3 or MP4 formats.
The financial sector is the one that has launched itself with the most interest to explore the world of Blockchain, not only due to the emergence of cryptocurrencies but also because of the advantages of maintaining a system of records (including accounting) without the participation of intermediaries can have.
But the applications for the company are many more. In the financial field, the Blockchain would allow a company to present a solvency record that would allow it to access financing and for banks to know that they lend to a solvent customer.
An autonomous validation system will allow companies to automate numerous processes, from purchasing materials to managing payroll, issuing invoices, ordering materials and other paperwork and paperwork, automating processes, and saving time and money.
Taken into the personal realm, a Blockchain-validated resume would avoid situations like we’ve seen in some politicians in recent times and make it easier for personnel managers to do their job.
In the production chains, it will allow to record and trace all the information about each component and each participant in the supply chain immediately, from the origin to the final consumer. In this way, the access of goods to a production center could be automated, raising the barrier if the inputs meet all safety regulations, for example. By the way, suspicions or hoaxes about obscure origins (such as child labor, labor exploitation, or plundering of natural enclaves in origin) that can do so much damage to companies would be avoided.
Definition of Blockchain: Blockchain is an unchangeable and shared ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, a car, cash, a piece of land) or intangible (intellectual property, patents, copyrights, trademarks). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and costs for everyone involved.
Why is Blockchain important? Businesses run on information. The faster it is received and the more accurate it is, the better. Blockchain is ideal for offering that information because it provides immediate, shared and completely transparent information stored in an unchangeable ledger that network members can only access with permissions. A blockchain network can track orders, payments, accounts, production, and much more. And because members share a single view of the truth, you can see all the details of an end-to-end transaction, giving you greater confidence, as well as new opportunities and efficiencies.
Key elements of Blockchain
Distributed ledger technology
All network participants have access to the distributed ledger and its unchangeable record of transactions. With this shared ledger, transactions are recorded only once, eliminating the duplication of effort that often occurs in traditional business networks.
No participant may change or alter a transaction once it is recorded in the shared ledger. If a transaction record includes an error, a new transaction must be added to reverse the error, but both will be visible.
A set of rules, called a smart contract, is stored on the Blockchain and executed automatically to speed up transactions. A smart contract can define the conditions for corporate guarantee transfers, including the terms of travel insurance to be paid for and much more.
Indeed, you have heard this term somewhere and have not given it much importance because you do not know its meaning. The Blockchain has become fashionable for some time; few know for sure how it works. Next, we will clear some doubts about it.
The Blockchain or chain of blocks is a concept that raises a revolution in our economy and, in addition, in all kinds of areas that we have every day. Understanding how it works is not that difficult, and since it is a term that is being used much more globally, it is necessary to know what it is.
The concept and technology of Blockchain were created in 2009 with the appearance of Bitcoin; In other words, the Blockchain is the technology behind this virtual currency, but it can be separated from it to do other things with it. For example, creating other cryptocurrencies (virtual currencies that can be exchanged and operated like any other traditional currency) based on the same principles but with other properties as the algorithm or monetary policy has changed.
The Blockchain can also be used to create other types of value representation. It is known as Tokens, which are those that you can use within an ecosystem to participate in a service or utility. An example is the casinos, where you buy your tokens (chips) that you can later use in their machines and restaurants.
What is the Blockchain?
The Blockchain is a technology that allows the transfer of data in a completely secure way thanks to very sophisticated coding. It is usually compared to a company ledger where all the inflows and outflows of money are recorded. But, in this case, it is a digital event book.
This transfer does not require an intermediary to verify and approve the information, but rather it is distributed among various independent nodes (users) that register and validate it. Thus, once the information is entered, it cannot be deleted. Only new records can be added. Furthermore, it will not be legitimized unless the majority of them agree to do so.
The Blockchain eliminates intermediaries, decentralizing all management. The control of the process belongs to the users, and it is they who become part of a massive bank with thousands, millions of nodes, each of which becomes a participant and manager of the bank’s account books.