Blockchain, or a chain of blocks, is a distributed digital ledger that stores data of any kind.
Blockchains are digital ledgers made up of individual “blocks” of data. As new data is occasionally added to the network, a new “block” is created and attached to the “chain.”
In this article, we tell you everything you need to know about Blockchain, the types that exist, and what their advantages and utilities are:
- What is Blockchain, and how fixes it work?
- What is the Blockchain for?
- Types and examples of Blockchain
- Four advantages of Blockchain
Table of Contents
What is Blockchain, and how does fixes it work?
Blockchain, or a chain of blocks, is a distributed numerical ledger that stores data of any kind. A blockchain can record info about cryptocurrency transactions owned by NFT or Defi intelligent contracts.
The name blockchain is no accident: the digital ledger is often describ as a “chain” consisting of individual “blocks” of data. If you want to know your digital trail on the Internet, we recommend this article.
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In addition, cryptocurrency transactions protected by cryptography must be processed by the nodes, which solve them through complex mathematical equations. Protocols like Bitcoin usually reward the effort involved in validating this shared data with new cryptocurrencies.
It is worth mentioning that there are public and private blockchains (or blockchains ). On a public blockchain, anyone can participate, which means they can read, write, or audit the data on the Blockchain. Therefore, it is challenging to alter the transactions recorded on a public blockchain, as no authority controls the nodes.
What is the Blockchain for?
Although Blockchain could be used to store any information and to carry out reliable verifications of the identity of a person, the most frequent uses of blockchains today are in the following areas:
- Cryptocurrencies: The most common use of Blockchain today is storing and recording data related to cryptocurrency transactions. The more people use cryptocurrencies, the more the Blockchain will become widespread.
- Banking: Beyond cryptocurrencies, Blockchain is using to process fiat currency transactions, such as dollars and euros. This could streamline these transactions as they can be more quickly verified and processed outside of regular business times.
- This is presently very popular with digital assets like NFT, a representation of digital art and video property.
- Smart contracts: Another blockchain novelty is self-executing contracts, commonly called “smart contracts.” These digital contracts are automatically enacted once the conditions are met.
- Supply chain nursing: Supply chains involve massive amounts of information, especially when goods go from one part of the world to another. Storing this info on the Blockchain would make it easier to go back and monitor the supply chain.
- Voting: Experts are looking for ways to apply Blockchain to prevent voting fraud. If you want to know why you vote what you vote, we recommend this article.
Types and examples of Blockchain
Given the characteristics of Blockchain, it is easy to think about which are the sectors in which this technology has the most room and future:
- Banking: The banking sector was the first to incorporate the Blockchain into its operational processes, as this technology was born in a transactional environment. Blockchain can facilitate the commercialization of certain banking products and ensure the speed of operations and avoid fraud risks. If you want to study how to prevent online banking fraud, we recommend this article.
- Insurance: Blockchain allows more efficient payments and premium collections management and reduces operational costs by streamlining all processes. As already mentioned, the BC is also beneficial for detecting fraud, like double-dipping insurance, and brings a lot of transparency to actions. If you want to know how to avoid phishing, we recommend this article.
- Telecommunications: The BC offers a series of advantages associated with authentication and security. Therefore, BC will impact the telecommunications sector, especially concerning network and business management. It helps to improve the competitiveness of the company and customer satisfaction. If you want to see more about Modest Intelligence, we recommend this article
- Blockchain allows different companies associated with the same logistics process to make safe and complete traceability of each stage of a product. In addition, the convenience of intelligent contracts improves productivity and optimizes logistics processes.
- Medicine: BC also allows you to follow the traceability of drugs easily. In addition, it will enable immediate and complete access to medical records, treatments, and identifications by doctors, patients, and researchers. The BC favors that the patient-healthcare personnel relationship can be direct and personalized.
- Business audits: Thanks to the qualities of the BC in terms of traceability and transparency, any organization can audit its activity without interfering with business processes under development.
- Media: Thanks to BC, communication professionals can reach audiences directly without going to intermediaries (media). On the other hand, content creators (not journalists) are gaining more and more relevance and more money with creating their information. For example, through the Steemit platform (based on BC), blog content creators receive payments in cryptocurrencies based on the popularity of their knowledge.
- Public administration: Several countries have already incorporated BC technology to generate a decentralized national administration and improve the experience of employees and inhabitants.
- Copyright: BC gives authors the ability to have more control over the unauthorized use of their works. There are platforms (CoalaIP, Mediachain, Monograph) that store images and audios owned by users in databases that allow the automatic distribution of said works upon receipt of an agreed payment.
- Online sales: The BC allows the emergence of initiatives such as OpenBazaar. Which uses BC to connect buyers directly with sellers, without intermediaries. For example, banks can become technology companies with transactional software services, technology companies develop platforms with non-bank banking functions, and telephone companies become a kind of communication and identity management media.
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