“Blockchain is not a technology – it’s a strategy.”
This is what Adam Ludwin – CEO of Chain.com – says about blockchain technology. His enterprise is a technology company that has its roots in San Francisco and is involved in building cryptographic books that are the basis for creating groundbreaking financial products and services. There are more and more suchlike testimonials in the tech industry. So what do we know about blockchain today and how can we use this knowledge?
The groundbreaking technology
Blockchain (list of records, called blocks) is a decentralized, distributed ledger of data (transactions), which as entries follow each other, forming subsequent blocks. The data ledger can be shared by many trusted sites. Blockchain is a kind of documentation of tangible and intangible assets. It’s characterized by data implementations based on blocks. What is unique about it is the fact that the technology combines cryptographic hash, asymmetric cryptography and a timestamp. Together, these factors make blockchain a tamper-resistant system. Doesn’t that sound like a technological dream?
The hero of the economy
Beyond question, we can say that the blockchain’s potential is still growing. Companies see the possibilities of this outstanding technology and more often optimize internal processes thanks to it. Although we have associated blockchain mainly with cryptocurrencies, its reach goes much further. Companies and industries are increasingly interested in this powerful technology. Let’s take a closer look at few of them:
1. Digital security
Cybersecurity is becoming a luxury nowadays. In the era of sensitive data abuse, the need to protect our property and identity is urgent. Blockchain could meet these expectations – after all, it’s the safest system available. The information contained on the blocks is highly protected. They are permanent and chronological records on the network, resistant to changes. All this together can be a solid argument to use blockchain to manage such important resources as our data.
2. Supply chain
Just as blockchains can protect information about ourselves, they can also record information from each of the participants in the network. For example, people who are part of the supply chain: food or raw material suppliers, producers, logistics companies and retailers. Everyone who is involved in the distribution of a given product or service may participate in the process of registering, sending and sharing data. What does this mean for us? It can give us a guarantee that we receive a good quality product of known origin.
3. Smart contracts
Smart contracts based on blockchain revolutionize contracting mechanisms. Thanks to them, the blockchain network can become a carrier of non-financial digital assets or a digital set of material values. In other words, smart contracts are applications that can have the same driving force as traditional legal contracts. With their help, one can save information on, for example, a purchased apartment. It’s not difficult to guess that the new way of recording similar information will significantly reduce all formalities and make the transaction itself almost inviolable.
Considering the above areas and all future purposes of blockchain – in banking, medicine, energy – we don’t doubt that this technology will completely change the face of the digital and analog world. It will become our new reality, affecting the economy and our daily lives. As a result, we can say that the words of the authors of “Blockchain Revolution” – Don Tapscott and Alex Tapscott – are becoming more and more important: