Blockchain for your business, do you need it?
Everyone interested in digital technology is talking about this -not so new- technology called Blockchain. Big enterprises and a lot of industries are already using it. The truth is it can really improve healthcare data management, real estate contracts, government issues and work in lots of other industries. Business owners and Tech directors have found in this technology the security and effectiveness they need.
Maybe you’re asking yourself: Do I want Blockchain on my business? Could it help me solve data and transactions current problems and improve operability? The answer is, well… it just might.
First of all, let’s define it. Blockchain is kind of a communication system to share any transactional activity or any information digitally, but without the use of third parties in the process (such as banks or data centers). This technology is also known as a distributed ledger, meaning all transactions inside the chain are validated by a network of miners all around the world.
Here’s a little chart to show you how does it work:
If you’re still unsure about whether it might work for your project and if it’s safe to invest in it, let’s say a lot of the big companies are already using it, and in a near future it might be the tech standard for everyone, so why not get ahead? Even if it never replaces today’s technology, it still is a safe bet and a cheaper way to manage data. But it’s important that you understand how it works and if it’s the right fit for your project right now. Some things to considerate:
Blockchain’s decentralization is based on diversity amongst miners, nodes, development, and ease of access. The network is accessible to anyone with an internet connection and gets rid of the need for third parties like banks and other institutions.
This is a necessary ingredient to ensure that data stored on the blockchain is accurate. There needs to be impartiality to transactions and no moral judgments about transactions on the network. It’s important for the network to treat all transactions equally.
Making Bitcoin open-source was Satoshi Nakamoto’s way to give access to everyone because anyone can create their own blockchain. Any decentralized financial network needs to have its source code publicly available for auditing.
Right now, you need to trust a third party to guarantee the value of your money. Cryptocurrency removes this need to trust someone by incentivizing every actor in the network to not debase the currency and not commit fraud.
Don’t be afraid, even though it might sound like everyone around the world will have access to your data, that’s actually not true if you don’t want to. There are different types of Blockchain and you can decide how private you want your chain to be.
Blockchain can be used not only for cryptocurrency as most people might think, but for everyday business’ needs like Smart Contracts and Data Input and Management.