Blockchain has revolutionized the way data can be shared because the data can't be hacked or deleted.
For businesses blockchain promises transparency, security and communication with partners from all around the world. It can support everything - starting from supply chains, real estate deals and ending with healthcare and educational data sharing.
Are you interested? Then read further. This article is for you.
Table of Content
What is Blockchain?
Blockchain literally has a block and chain format where information is secured and held by chains of code.
Blockchain definition is simple - it just stores information in blocks that are linked together and form a chain. Once you have your data recorded inside of a blockchain, it’s almost impossible to change or hack. Of course, you can find more sophisticated explanations or more simple ones called blockchain for dummies or nooks. But I would advise you to look at the visual below and everything will become crystal clear:
Let’s take a closer look at one of the block's structure. Each block contains:
Each time, when changing something inside a block, the hash changes as well and it’s not the same block anymore. This makes the following blocks invalid and alerts that the blockchain was tampered. Of course, there is a way to recalculate all the following hashes and make it work again but it's quite difficult to do.
Each blockchain can be considered as a database, but it doesn’t work vice versa. A blockchain stores information in data structures(block) but a traditional database is a structure that stores information.
A blockchain database advantages are:
A blockchain database disadvantages are:
Although a blockchain can contain any information, it's not recommended to store vast amounts of data as the network has limitations and is quite expensive. It can record anything - like rights to intellectual property, financial accounts, patients' medical history, job recommendations and, etc.
A Distributed Blockchain Ledger
A distributed ledger is a type of database that is shared across multiple sites and is accessible by different people from different geo-locations. All additional charges made to the ledger are copied and visible to all participants. The key points to understand and remember, are:
A blockchain network provides ledger and smart contract services to applications. The users of applications are the end users. A number of organizations may form a network that operates under policies that are agreed ahead. There are four types of blockchain networks:
Blockchain provides a solution to participants who don’t know or trust each other to record and monitor transactions. Blockchain is based on cryptography, which prevents data from being tampered with or manipulated by third-party users.
High security is one of the main blockchain’s advantages. The data is not stored in one computer but spread across multiple ones. Each time a new block is added to the blockchain, all the network computers update their blockchain. Decentralization makes it more difficult to tamper with information or hack the whole chain.
The key concepts of blockchain are:
The simplest way to invest in the blockchain is to pick a publicly-traded company that includes a blockchain into its operations or offers blockchain-related services to its customers. Some companies are focused solely on blockchain or cryptocurrencies, others use blockchain products and services for an existing business.
Blockchain stock companies have offers for everyone:
Blockchain Supply Chain
Blockchain provides security and transparency that are highly beneficial for the supply chain. Supply chains are quite complex - including production, logistics, advertisement, sales, customers, and more. As there are many visible and hidden steps and stages in the supply chain, it is difficult to monitor it or develop trusted partnerships. Blockchain solves supply chain trust issues and offers transparency.
The main benefits of using blockchain in the supply chain are:
Blockchain and AI
How can blockchain and AI are related? They are two trends that can enhance the capabilities of each other.
Here are how AI can be implemented in the blockchain:
The Internet of Things (IoT) connects places, people and products but has a number of technical concerns. Blockchain can help solve security and scalability issues associated with IoT:
Industries That Blockchain Will Change
With time blockchain will affect a wide range of industries including: