Blockchain is another one of those terms that seems to be popping up in all sorts of conversations lately. But do you understand what Blockchain is and how it works? More importantly, could it be a solution for your business?
What is Blockchain?
Blockchain is a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly. It records the history of transactions and cannot be altered.
Why do we need it?
Transactions take place every second in the world today. All over the global there are orders, payments and account tracking every hour of every day. Often, each participant has his own ledger which is his version of the truth. Having multiple ledgers is a recipe for error, fraud and inefficiencies. The goal is to see a transaction end-to-end and reduce those vulnerabilities for businesses and individuals.
How does Blockchain work?
So how does all this work? The transactions are complex because each participant has his own, separate ledger. There is always the possibility of human error or even fraud so the reliance on intermediaries for validation creates inefficiencies often. The whole situation can result in a paper-laden process, with frequent delays and potential losses for all stakeholders.
Can Blockchain makes it better?
With Blockchain there will be one single shared ledger that is tamper evident. The transactions are all recorded in it and once that happens then transactions cannot be altered. For further validation, all parties involved must give consensus before a new transaction is added to the network. This will reduce paper processes, speed up transaction times and therefore increase efficiency.
How to Build a Blockchain.
When each transaction happens it is put into a block, this occurs with all transactions. Then each block is connected to the one before and after it. The transactions are blocked together and each block is added to the next in an irreversible chain.
The benefits of Blockchain are critical to enterprise:
Distributed: This is a record system that is accessible among all that participate on the business network.
Permissioned: As a participant each member of the network can access the information but it is not shared with others.
Secured: Once the transaction is recorded there is a permanent record. Nobody can delete or alter it later meaning that the information is secure.
Opportunity: Blockchain is creating extraordinary opportunities for businesses to come together in new ways. It creates a new business model that reduces inefficiency and gives value. It streamlines business processes and reduces risk and uncertainty.
IBM Blockchain empowers businesses to transform workflows through a highly secured, shared and replicated ledger. A new concept available from a trusted brand that can enable organisations to engage securely. It comes with many advantages including freeing up capital flow, lower transaction cost and speedy processes. IBM Blockchain may be what your business is looking for.
DNA IT Solutions are one of only a handful of IBM Cloud partners in Ireland today.