Today every company is after blockchain technology due to its security, privacy and opportunity of glitch free financial transactions. If you are one of those who wanted to try out its benefits, do look at our extensively researched compilation of top blockchain development companies based in Seattle.
What is Blochain tech?
Although it is a fairly old technology -data of 1991-, it is so far that the benefits of blockchain are widespread in the country, due to the advantages offered by this tool to companies. This allows you to store information that can never be lost, modified or deleted.
Each node in the blockchain network uses certificates and digital signatures to verify the information and validate the transactions and stored data, which ensures the authenticity of said information.
By 2022, an annual 51% blockchain growth is projected for several markets, such as financial institutions or Internet of Things (IoT). Its use is popular in the cryptocurrency market, where it functions as an accounting record of transactions.
On the other hand, it is very useful for the management of goods and digital documents.Since each block is mathematically linked to the next one, once a new one is added to the chain, it becomes unchanged.
If a block were to be modified, its relationship with the chain would be broken, that is, all the information recorded in the blocks is immutable and perpetual.
This technology also allows, in financial operations, to take out the trusted third party (“Trusted Third Party”) —which leaves a percentage of each transaction—, such as that which exists when conducting a monetary transaction between two people (banks).
For example, if Ana wanted to send $ 100,000 to Luis, with the blockchain she would no longer need a bank as an intermediary, but could be direct between both parties, saving the commissions.
The same would happen with company purchases.
“These new payment methods, such as bitcoin or others, tend to be much cheaper than the traditional system; however, companies must evaluate their industry well and how to use it to validate that everything is legally and in the business sense, “said Walter Montes, CEO of WolrdCrypto and technology consultant.
Implementing projects among multiple companies (consortiums or chains of companies) that require real-time data collaboration with security, is another of the uses of the blockchain suggested by the expert.
Blockchain is called to be the next milestone within Industry 4.0. Today we are all familiar with cryptocurrencies, especially with Bitcoin, the first practical use of the blockchain.
The renowned magazine The Economist defines the blockchain as “a distributed database that maintains a list of records, or blocks that is continuously growing.” The information contained within a block is unalterable, since each block has a unique time stamp, contains a link to a previous block and is known to everyone in the network. The information that is stored in each block represents actions that are performed between two parties in a verifiable, permanent, secure and anonymous manner.
How does blockchain impact industries?
According to Oscar Mane, co-author of the book Blockchain: The Industrial Internet Revolution, will be paramount for the development of Industry 4.0. “The machines can negotiate with each other, make payments or order supplies alone.” Artificial intelligence, the internet of things, 3D printing, 5G communications, Big data, etc., will work together efficiently and without intermediaries, through what is known as a smart contract. Siemens and General Electric are conducting tests with these technologies.
The blockchain will eliminate third parties in a transaction, which will affect banks, notaries, auditors, authors’ societies, payment gateways, among others; however, it will improve processes such as:
- Public and private records, such as property records, permits, scholarship management.
- Electronic voting, the new European regulation GdPR is working on digital identity.
- Smart cities, energy trading initiatives, connected vehicles.
- Digital signatures, to maintain privacy in medical records.
- Fintech transactions, made at any time and in minutes.
- Traceability of products, from manufacturing to consumption.