Blockchain technology is the building block behind every cryptocurrency. Digital currency experts believe that it is the technology that is actually responsible for the wider acceptance and popularity of cryptocurrencies. And theyâre right: blockchain technology is what adds real value to currencies like Bitcoin, Ethereum and Ripple.
How Does Blockchain Work
At its core, Blockchain is a decentralized database of records, or entries, made over a period of time. This record of transactions is publicly available and can be checked anytime for accuracy. It is also continuously updated by a P2P network.
When there is a query made for a new transaction, the record keepers (known as miners in most cases) check the request for authenticity and compute the most efficient manner of resolving it. Once the query is authenticated, it is added to the chain of records as a new block.
All the miners then update their own ledgers of record to ensure there is no discrepancy.
The main advantage of blockchain is that it is a dynamic database system. It potentially allows hundreds of thousands of record keepers to add a new entry, yet only the most efficient entry is actually added to the database. Once the entry has been executed, no one can change it.
The system is impossible to hack as the new block is checked for authenticity and accuracy by the majority of miners. No single miner or even a group of miners can collaborate to change the record. Any attempted forgeries will be discarded by the connected network operators.
Blockchain Technology Usage In Tech Industry
Many skeptics claim that Bitcoin is overvalued. Â The current prices do not reflect the actual value of the coin. Yet even the most outspoken skeptics agree that there is value in the blockchain technology. Some of the global tech corporations have started pouring funds into researching blockchain for their own transactional needs.
Two of the major companies that have already started developing their own blockchain platforms are IBM and Samsung. Â Even Google and Goldman Sachs have made investments to find out how a worldwide P2P authentication network could be utilized in their existing businesses.
Microsoft is working on building a blockchain based digital identity system that will enable people to solve some of the problems faced in managing their identity and personal data online
Blockchain Application in Logistics
The technology offers a lot of potential for keeping track of inventory and building supply chain. Many end consumers do not know where their products have come from, face complex processes with intermediaries and find it difficult to pinpoint losses when they occur. Fictitious pickups are another problem, which make up 10% of all cargo thefts.
The blockchain technology allows smart contracts which will automate the purchasing process.
This will save time and cut costs for businesses, improving the supply chain.
It is estimated that 6 out of 10 major companies involved in cargo freight business are currently exploring ways to use the technology for their businesses. Wal-Mart teamed up with IBM to increase the efficiency of their supply chains.
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