An Enterprise Guide to Blockchain
Referred Link - https://www.linkedin.com/pulse/enterprise-guide-blockchain-abhishek-prasad
The blockchain is undeniably one of the most trending technologies at the moment. Originally devised for the digital currency – Bitcoins, Blockchain has expanded its dimensions and now holds the potential to disrupt the way a business operates – in any sector.
While it is still believed to have a lot of unidentified potentials, it has become important for every tech-enthusiast and even business firms, to understand what it is, how it operates and how can it bring a difference to their business. In this article, we shall try to explain the same.
Blockchain and Distributed Ledger – What are they?
In simple terms – Blockchain is an incorruptible and immutable digital ledger that holds the records of every transaction.
Distributed Ledger is a simple database of transactions that securely records the information across a peer-peer network. The transactions are shared and synchronized across several computers and locations without any centralized control.
The parties involved in the transaction own an identical copy of the record, which is updated in real-time if any additions are made.
What are Smart Contracts?
Smart Contracts are self-executing contracts that help a transaction to take place without the involvement of a third party or middlemen. They are programmed in such a way that they trigger payments or any other relevant action as soon as the proposed conditions are met. Real-Time information like the asset GPS data are examples of triggers that initiate a transaction.
How does Blockchain work?
A Blockchain stores data in nodes that are immutable once stored. When a transaction happens between a peer-peer network, the data is recorded and each participant is able to review the entry and approve, reject or verify depending upon the information available. Once approved, the data is stored in blocks or nodes that are stored in chronological order – or chain and cannot be altered with the consent of all the participant involved.
What are the different types of Blockchain networks?
There are 4 types of Blockchain network available as of now.
- Consortium Blockchain – This is presently the most popular form to establish a blockchain network. In this, the approval of information is controlled by a previously selected party or individuals – a group of corporations for example.
- Semi-Private Blockchain – These networks are run by a single company that allows access to a transaction to individuals who have cleared the terms and condition to be eligible for the same. This is gaining popularity in the B2B market.
- Private Blockchain – They are 100% centralized and private networks that are controlled by a single organization and hold the power to control who reads or participates in a transaction.
- Public Blockchain – The information is public and anybody can read or participate in the approval process. Although users can opt to be anonymous, the details are public and anybody can be a part of it. Bitcoin is an example of the same.
Benefits of Blockchain
The potential of blockchain in now in open and so is the plethora of benefits it brings along with itself. Let us have a look at some of them.
- The peer-peer network removes any third party intermediaries like banks etc
- The consensus, approval and the verify processes happen in real-time which ensures faster transactions
- Every involved participant has the access to the information stored in blockchain and no alteration can be done without the consent of them. This brings trust and transparency to the entire system
- As the distributed ledger systems are decentralized, they provide faster ROI and help businesses create a better business model that brings them more profits
- The networks are highly secure and impossible to hack. This reduces any fraudulent activity to take place and promises to bring a reliable business platform to ensure productive business activities
- Blockchain’s algorithms are programmable and can be used to automate systems on the basis of prior terms and conditions
Some of Blockchain Use Cases
As blockchain are becoming more and more popular, different business sectors are trying the accept this technology and make the most of it.
- Financial Services – With blockchain, the security of asset or money transaction can never be compromised and money transaction can be held more securely.
- Voting – With the introduction of this technology, audit trail of election’s votes can help track the voter’s identity store the data securely.
- Supply Chain – Blockchain can help to easily track down any information regarding the product – where and how it has come to the end user. W the help of Smart Contracts management of these data will be easier and more secure.
- Real Estate – The real-estate industry involves a great deal of paperwork and in-out transactions. With the help of this technology, the information can be stored securely and can be tracked down without the involvement of any intermediaries.
- Utilities – Peer-to-Peer energy trading among utility conglomerates, automated billing for autonomous electric vehicle, solar energy etc can be benefitted with help of Blockchain
I am excited to see what this technology will bring to us in 2018. I hope this article gives you an idea of what it is and how your business can benefit with this.
This article was originally published at Aexonic Blog
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