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Blockchain and Its Effect to the World

Once information is updated on the blockchain, no one can attempt to alter or forge the records.

Blockchain is a disruption that will have the greatest impact to the financial industry. Big banks and some governments are already using the blockchain to revolutionize the way data is stored and transactions are processed. Representing the second generation of the Internet, it holds a huge potential to transform the industry and the world extremely. Whether we like it or not, we simply have to embrace the technology.

As a distributed ledger, the blockchain aims to increase security, lower costs, and eliminate errors and failures. It enables a reconciliation of digital records in real time. Unlike the first generation of Internet, it will transform:

  • insurance
  • risk management
  • funding and investing
  • moving value
  • authenticating identity
  • reputation
  • lending and borrowing
  • exchanging value
  • storing value

The technology does not only store and move information securely, but also money, titles, equities and other values.

It is already known that the blockchain keeps a permanent record of all transactions over the network. It can be used to verify transactions and cryptographic keys. It does not only allow us to store information but also gives us complete control over it. It also helps us verify the timestamp, validity and status of entries on the register. Furthermore, it makes it impossible for anyone to make changes to any information in the blockchain without explicit permission from the entry or the creator.

Through the blockchain, trust is established with clever code and mass collaboration. It is a platform of transparency with regards to structured recorded information.  It is an open source code, which everyone can download for free and develop new tools to manage transactions online. In a word, it holds the potential to unleash numerous new applications and unrealized capabilities to transform many things.

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Blockchain 101: What You Need to Know

Companies need to know what goes on beyond the four walls of their businesses in order to gain greater insight to their full supply chain. They need technology that will enable them to understand the total process that runs their supply chains. Thus, Blockchain becomes a very interesting idea for organizations. It promotes trust among companies by bringing transparency into the supply chains, therefore making it “trustless”.

What is a Blockchain?
First, let us define what a Blockchain is. It is a transaction database that contains a continuously growing list of data shared by all nodes participating in the system. Every block contains a hash of previous blocks, creating a chain of blocks. Each block is guaranteed to come chronologically after the previous block and is computationally impossible to modify as every block after it would have to be regenerated.

Blockchain is the main innovation and technology behind Bitcoin. It is most widely used in the currency’s public ledger of cryptocurrencies. Based on a Bitcoin protocol, it contains every transaction executed in the currency. It contains all information about the addresses and their balances. That is because every computer connected to the Bitcoin system gets a copy of the blockchain. It is automatically downloaded upon signing up to the network.      

Decentralization
A block chain is open but secure. It is auditable and runs without a centralized operator. It is the only place that Bitcoins can exist in the form of unspent outputs of transaction. Unlike traditional payment systems like PayPal, it does not require a centralized database.  Since transactions are made by software applications, the nodes validate the transactions, add them to their copy of the ledger and broadcast them to other nodes.

The blockchain provides transparency a traditional centralized approach cannot. It can allow companies to make informed purchases by increasing visibility. It makes the authenticity and transparency of products and services less difficult by ensuring safe and verifiable transfer of digital property across expansive networks. In a word, blockchains may very well change the game of the complex global supply chains.

Time will tell.  Organizations are conservative, but we are already seeing adoption of the technology across the financial sectors worldwide.   Supply chain professionals should start considering the value of an open public ledger when considering new b2b commerce networks.

Blockchain: Changing the Way We Do Business

Blockchain, the technology behind bitcoin, promises to improve efficiency in numerous processes and create new business opportunities. It is a backend database with a distributed ledger and an exchange network for transferring value between trading partners. It doesn’t require a middleman to validate transactions. While it is still on the early stages, it could affect customers and the society by creating openness and providing a new level of freedom and empowerment.

In terms of thinking and activity, financial services is the most popular industry that the blockchain threatens to disrupt because it impacts everything that a bank does – money, contracts and movement of assets. Other industries that the technology is set to change include:

  • Healthcare
    Its application to healthcare would be on medical records. The blockchain could verify if a specific procedure has taken place, share data and ensure encryption, and authorize others to access parts or your whole medical records.
  • Government
    The blockchain has an embedded trust component so you don’t have to go somewhere to prove your identity. For instance, you need to make a transaction with the land registry, motor vehicle registration or property ownership. You don’t have to be somewhere to make that transaction.
  • Real Estate
    Blockchain gives a good historical record of anything, including time stamps, service or ownership. With the technology, you don’t have to erase the previous state to make room for the new one. You just add a line below like a ledger. The blockchain can store the history of who owned a particular house since the time it was built, and that record cannot be tampered with.

How will it change the way we do business? In this era of Big Data and Internet of Things, assigning a digital signature to each data can be useful. Recording and verifying each stage of the business process help improve the reliability and quality of products and services. It will affect not just your bottom line but also the top line – creating new revenues, growth and services. By allowing customers to check everything on the blockchain, they will have a new level of freedom, too.

The blockchain is about trust, transparency and the truth. It enables greater visibility by allowing you to know what has happened, when it happened and how true it is. In the future, services and applications will use the technology and we will use it to verify records and authenticity.

 

Why Every Start-Up Company Should Consider the Blockchain

The blockchain has created a buzz around the business industry for over a year now, but nobody seems to truly understand it. In laymen’s term, it is a digital platform for recording and verifying transactions. It allows transactions to be anonymous and secure at the same time. It distributes trust through mass collaboration. Its underlying framework can virtually record everything, making it a true medium for value. 

Four main things drive the excitement about the blockchain in an enterprise:

  • Proof of Authenticity
  • Data Notarization
  • Data Aggregation
  • Asset Settlement

These four provide exciting opportunities around reorganization of the backend processes between and within enterprises.

How can the blokchain help start-up enterprises? As a digital ledger, it timestamps transactions by logging into an uninterrupted chain of records and providing proof of all transactions. It is unbreakable and un-hackable. Most of all, it is crowd-sourced. The technology streamlines costly and complex processes such as trade processing, clearing and settlement. Since it cannot be tampered and exploited in any way, it is the perfect solution for transparency issues.

Many start-up companies contract on the open market and create corporations due to high transaction costs. While the Internet reduced cost of search, communication and coordination, the blockchain makes it cheaper for companies to organize capability inside their boundaries. It is a global peer-to-peer platform of transactions, reputation, identity and trust, which promote innovation and shared value creation.

Start-ups should be immensely hopeful about the blockchain. The technology has opened a world of possibilities that enables economic empowerment. It allows them to own their identities and personal data, do transactions, and create and exchange value without intermediaries. It lets them protect their own identity and monetize their own information. It is a dream come true for the entire business industry, addressing transparency issues in one gracefully designed package.       

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