Blockchain is the buzzword, but it also promises to be a true digital revolution. You may have already heard of this new concept, the cornerstone of cryptocurrencies and bitcoin. But this Technology goes beyond the mere exchange of digital currencies. Here we explain what this new technology consists of and how you can get the most out of it for your business.
How Does The Blockchain Work?
The term blockchain, or data chain in Spanish, refers to a digital, encrypted, and decentralized database that maintains the record of data exchanges or transfers. But these transfers are not limited only to bitcoins since we can make transfers of anything that can be digitized.
In simpler words, we could define it as a vast digital ledger where the blocks are linked and encrypted to protect their security. The data is recorded in blocks chained together, so it keeps a record of all the operations carried out.
The blockchain works by eliminating intermediaries and decentralizing data management. The information is visible to any participant since it is a shared blockchain, allowing computer teams to store the data in a permanently updated way and synchronized copies.
Furthermore, any registered information cannot be modified or deleted, and the other network participants must verify any new registration. This allows said community to be in charge of protecting the registered data and alerting possible inconsistencies derived from each update. In this way, this new technological paradigm is positioned as a fast, inexpensive and incorruptible system.
What Is The Blockchain For?
Although it is not limited solely to financial transactions, the term blockchain has become known with the arrival of bitcoin. These cryptocurrencies use the blockchain as a fundamental element, functioning as a 2.0 ledger that allows recording transactions carried out in a highly secure, transparent way and without intermediaries.
The blockchain thus solved the problem of the transfer of cryptocurrencies, eliminating fraud and dependence on a central server. However, the possibilities offered by the blockchain are many, and various sectors can benefit from this technology.
What Can The Blockchain Bring To Your Business?
Any activity that requires data recording can incorporate blockchains into its operational processes. The banking and financial sector is not only using the blockchain. It also allows us to manage smart contracts, store data, or even optimize our marketing strategy.
Security And Transparency
As you have seen, security and transparency are two essential advantages of the blockchain. The blockchain system ensures that participants can be verified without exposing their personal information, which allows users to have control of their data, and companies avoid the risk of manipulating large amounts of personal data.
Intelligent contracts or smart contracts are one of the most prominent applications of the blockchain. These contracts are verified and executed automatically and autonomously.
The blockchain allows conditions to be programmed, and the parties involved can sign it. In addition, the blockchain offers certain advantages since we save time and money. At the same time, it increases security concerning the traditional contract since the said contract cannot be modified.
Currently, cloud storage depends on a server. However, many companies offer this service using a decentralized system, such as the blockchain. The advantages? More security and less dependency.
The uses of the blockchain also go through digital marketing and how the different web search engines work. Currently, companies like Google or Facebook act as intermediaries between the media and advertisers. With the blockchain, this dependency would disappear, making the process much faster and cheaper.
Another advantage that this technology can provide is greater security to the online shopping and e-commerce process. In addition, it would allow us to track the products from their manufacture to their recipient fully.
In addition, the blockchain allows each user to be the owner and responsible for their data and have the ability to choose the advertising they want to receive according to their tastes.
Data Registration And Verification
The blockchain’s ability to store unalterable encrypted information can keep any other type of information. In this way, we can generate a wholly secure and unalterable distributed registry without the need for third-party help to manage it, as is the case with traditional databases.
Currently, companies are already offering this type of service applied to health, to record medical records, in the property registry, or to protect intellectual property.