How one of the most promising technologies on the market works and how it can benefit businesses.
To understand this… First, what is blockchain
Although at first glance, it may seem complicated, blockchain is not so difficult to understand.
Let’s say blockchain technology is a set of technologies like P2P, cryptogram, time stamping, etc. It can be the element within the network that verifies who we are and whether we really are the ones whom we appear to be.
In short, a system that provides online trust among users who use this technology.
A level of transparency that comes, among other aspects, by the fact that the records cannot be altered once written and can be visible by any member of the network.
So far, this mission is carried out by banks or Paypal as intermediaries, whom to certify that it is us, finally manage and market with our data.
Hence, and at this point, blockchain intervenes as a kind of database in which everyone participates in the network, and in which as everyone has the same information, it is noted that this is true.
In principle, there can be as many blockchains as we want, and they can also be interconnected with each other, or not.
There are public blockchains like Bitcoin, and other cryptocurrencies, for which this type of technology is known, and private blockchains, which allow access to whatever their owners want.
Blockchain, from the financial sector to the business world
Bitcoin was the first major blockchain. That’s why blockchain technology is often associated with banks and the financial sector in general.
However, and increasingly, it is being shown that this type of technology, coupled with others such as the Internet of Things, can be applied to any type of transaction (not only financial), but also to all those that require verification by users.
This is where companies come in. Blockchain then represents enormous potential for other business environments, where security needs to be implemented within transactions.
How it can benefit businesses
The benefits of blockchain, which are basically based on building trust, can be applied to other types of transactions such as:
1. Smart Contracts
They give the possibility to generate so-called digital trust. A whole line for contracts between individuals, companies or any other body, which has the same verified database will remove barriers and generate trust between those who use it.
2. In the collection, storage and management of data
This is one of the biggest challenges of blockchain technology within business disruption.
Because you will be able to share the same technology, you won’t need to synchronize other databases. So more confidence will be generated in those sectors in the crosshairs of fraud, such as real estate managers, master’s degree certifications or academic degrees, insurance companies, etc.
3. Sectors where the intermediary is key
In those businesses where the intermediary plays an important role so far.
For example, in the content sector or the creative field, such as music, where there are intermediaries who take a high percentage of the creators’ income.
Here creators them self are emerging thanks to blockchain technology new companies that eliminate the intermediary and bring the consumer closer to the creator.