Blockchain is a distributed ledger technology that exchanges record transactions between parties in a secure way.
Blockchain has three main features –
1. Accessibility: Blockchain helps to create a transparent, permanent, and public system for compelling data, which is accessible for everyone in the system. The distributed information among multiple systems makes it accessible to all the stakeholders.
2. Security: Since, Blockchain has a ledger of information, which got distributed across the various P2P network. It ensures the security of data by not having a single point of failure. A hacker would need to attack countless devices at once to collect a little bit of data and put them all together. And which is not practically possible at ease.
3. Accountability: A blockchain is a digitized, decentralized public ledger. And ‘blocks’ are recorded in chronological order to allow users to keep track of transactions without central record keeping, which breaks the need for a complex accounting system and accounting agency.
Have You Ever Heard Of Cryptocurrency?
A cryptocurrency has been the First-Ever Practical Application of Blockchain Technology. It is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
In the year 2009, Bitcoin was released as the first decentralized currency ever. Since the release of bitcoin, over 4,000 other coins created using the same technology. In recent times there were many repels about Crypto Currencies. Due to multiple ransom hacks all over the world and hackers are demanding their payment in bitcoin. These types of incidents lead to the ban of Cryptocurrency by many countries. Even though the first-ever purpose has setbacks, the core technology found value in other businesses.
Is It Necessary For Non-Financial Companies To Implement Blockchain?
Companies of all stripes continue to show a keen interest in implementing blockchain. But, there is scrutiny surrounding this technology. Contemporary to the above, companies have no idea whether it is necessary to implement the technology for them or not.
In regards to the supply-chain industry, blockchain claims it has a lot of value in the business process as the system lets each processing and storage step in the supply chain to the stakeholders. Maybe during a product recall, the company can see which batches are affected and who bought them.
However, if you are planning to implement blockchain technology for your business, you should think about the cost and its real need in your business. Because still the technology is evolving and a lot of research is going on.