How Blockchain Technology works-BoldTek Series
What is Blockchain??
Blockchain was originally created to be a decentralized ledger of Bitcoin transactions that take place within the Bitcoin network.
A decentralized or distributed database/ledger essentially means that the storage devices, where the ledgers are located, are not linked to a common processor. The blockchain contains the ever-growing list of transactions by way of blocks. Each block is time-stamped and then linked to the previous block to become a part of the blockchain.
Users are only able to edit the sections of the blockchain that belong to them. In order to edit, the user is required to have private keys, which is equivalent to a password. The great feature of blockchain technology is the fact that every copy is synchronized even though the blockchain is not linked to a common processor or accessed through devices linked to the processor. An example of storage devices linked to a common processor could be office computers logged onto the company network.
A master data file is edited and saved. No synchronization is required as there is only one master file stored centrally. With blockchain, it would be as though all the computers were off-line but were able to access and edit a master file that was always in sync, without there being a need for the master file saved on the company’s central server.
Why is Blockchain Needed?
Since the invention of the World Wide Web and cell phones, there has been very little to shout from the rooftops about. Sure, we’ve got cars that can drive themselves and the hype over artificial intelligence is building, but nothing is likely to be as material as the introduction of blockchain technology, not only into the financial system but into everyday life.
For the financial system, the prospect of a decentralization away from a centralized system is a daunting one to consider.
Blockchain is not only Bitcoin, it’s much more than That
There are countless areas in which blockchain technology can have a dramatic effect. Some examples include:
Supply Chains: The ability to track foods from farm to shelf is one that has recently made the news. IBM announced that it has begun working with the larger food suppliers, including Nestle and Walmart, to take advantage of blockchain technology. Of particular interest to food, suppliers are being able to identify the source of food contamination, as well as being able to track the producer within the food supply chain. Beyond food, the transparency of blockchain can also give consumers the true source of manufactured goods, which has become important in today’s society.
Energy sector: The trading of energy with the use of blockchain could allow the consumer to sell excess energy to their neighbors, removing the control from the utility companies. Similar to financial markets, there may even be a range of prices as supply and demand dictate price.
Governments: Governments have already begun pilot projects to incorporate blockchain technology into their daily operations. The intention being to make the efficiency gains that the technology can deliver. In the UK, the government has used blockchain technology in the disbursement of student loans and also to track the payment of benefits to the underprivileged. The government’s view is that blockchain could reduce corruption, the number of fraud cases and costs by shifting away from the current use of paper.
Elsewhere, governments are looking to use the technology for record keeping, including land property deeds. The use of the ledger could, in fact, be used to record the transfer of titles and deeds of property.
Healthcare: The removal of the paper trail in the healthcare system and making patients’ medical records are available to the patients’ without the threat of hacking or leaking. Additionally, a decentralized ledger of medical data may even be able to provide the necessary data points to support the fight against virus and disease.
Music Industry: Protection of rights and distribution of earnings within the music industry is a key consideration, as the industry looks at ways to adopt the technology. Removing the ability for piracy and allowing listeners to download music stored on the blockchain, paying for the music with cryptocurrency would be one of the paradigm shifts in the industry. It would also mean that the right people get paid… It may well be the death of distributors, but it’s unlikely that artists within the industry will lose any sleep over such a prospect. Blueprints have already been published in a decentralized blockchain ledger that is expected to solve the issues of rights and payments. The first artist to engage cryptocurrencies in the music industry was Bjork with a release of a new album that provides buyers with 100 Audiocoins.
These are just a small number of examples. Blockchain technology is being explored across all of the major sectors and with many industries already rolling out pilot projects, the skeptics may have to eat their words.
How BoldTek can be helpful for your secure Blockchain experience?
BoldTek has highly experienced team, actively working on Blockchain projects and POCs, We can implement Blockchain as a technology for solving complex tracking and monitoring problems with immutable product/service related information in the field of supply chain management, Real Estate, Energy, Healthcare etc.
To know more about our expertise and services areas, feel free to Contact us.