What is Blockchain Technology? How one blockchain can have Infinite possibilities & opportunities in hand in this red ocean market world.
Total Reading Time – 7-8 Minutes
Stuart Habber and W. Scott Stornetta authored a paper in 1991 detailing the preservation and protection of past data through the use of cryptography. This can be called as foundation of Blockchain.
Blockchain as on date is mystery story for many (Including my self). The underlying component technologies of blockchain drawn from years of research across cryptography, computing, and economics. In this section we will uncover some of this history.
We have heard lot that it yields strong potential in global supply chain. It is become the backbone tracking architecture for an evolving and fully transparent grid. Investors can also look to diversification into this burgeoning new space via first-movers like oil and gas giant BP, and tech companies like IBM. Now some companies are busy in developing a blockchain based system that will become the data security centre in this era of Big Data.
So are we moving from centralise model to decentralise model for all our business!!
So what is blockchain
It is a protocol like any other and reminds me of SwarmIntelligence. The architecture of blockchain present a more secure way of saving and securing data. On one hand this can reduce fraud on other hand it reduces transaction processing times and fees in financial domain. Blockchain in financial domain is used for below purposes (few examples)
- To send information
- Track information
- Transmit information
- Remittances or cross border money transfer
- Secure information, mainly in financial world
Blockchain is not bitcoin
Bitcoin is digital money. A virtual currency that was the first successful blockchain product. Blockchain is the technology that enables cryptocurrency and provides solid & secured foundation like bitcoin, ethereum, ripple etc. Lets stop here and put one thing in our minds “BlockChain and BitCoin are not synonyms”. Blockchains can be compared to traditional BigData or distributed databases like MongoDB as well.
Smart contracts terms of programmable autonomous contracts are ensured by this exemplary technology. Some examples of for use cases outside financial domain are as below.
- Online voting to address voter fraud.
- Can be used as secure identity
- Data security ; as data is the costliest a-fair of today’s time
- It yields strong potential in global supply chain
- Retail industry system based on blockchain that can become the data backbone
To illustrate it has many examples like above; at the same time it has many other use cases where transparency and security is lacking.
Blockhchain allows businesses to transact more smoothly and efficiently. Transform your business and digitize your transaction work flows.
Backbone for Businesses
Blockchain can work as strong backbone for businesses. This can even called as immune system of any good business of today. It is kind of distributed digital ledger technology as a powerful tool getting attention at rapid pace. Its like featuring a product that contains small blocks of brain in form of dust in contrast.
Smart Contracts – The term was first coined in 1993. SmartContracts become a buzzword in 2013 when Ethereum project about “Decentralized Platforms'” kicked in. Where it was all about an applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.
Smart Contract became hero thereafter in moderne businesses across the industry. Ethereum-enabled internet-of-things platform, uses this application to allow customer to rent bicycles where they can unlock a smart lock after both parties agreed on the terms of the contract. This is example from one of the company (Slock) project.
Cloud storage – This as another application that businesses can take advantage off. The offering is all about secure cloud storage while decreasing dependency.
Hyperledger – This is an umbrella project of open source blockchains and related tools, started in December 2015 by the Linux Foundation, to support the collaborative development of blockchain-based distributed ledgers. All over the global market there are ledgers that organizations and individuals alike must trust.
Blockchain is probably the most revolutionary innovation of the last decade. We are living in Contracts aka third generation.
An angel for your Blue Ocean Shift Strategy
Blockchain can give you the market which is your own and with competition in front. If you understand your business and where to use Blockchain in it then whole of Blue Ocean is certainly yours. The blue ocean shift strategy allows you to sail freely and therefore to grow your business smoothly without any challenge. Now Lets take all action frameworks one by one.
First action – Eliminate
Which of the factors that the industry takes for granted should be eliminated. For this blockchain suites 100% as there are many of them. We can take security issues; It is considered as most secured technology of today. If you have it right you are set.
Second action – Reduce
Which factors should be reduces well below the industry’s standard. Easy one to guess; cost is your answer. it involves value innovation, which give organizations the ability to combine differentiation and low cost at the same time.
Blockchain allows for simulation.
In this setup transactions are recorded and visible to everyone, therefore it is not purely anonymous. But it does provide pseudonymity. For example, digital wallets are identified via the wallet’s public address or public key. The public key may or may not connected to personal information such as name or address. This allows anyone to transact privately and reputably with data remaining secure.
Conclusion– Blockchain allows you to transform your business and digitize transaction work flows. Finally as a result of this cutting edge technology importance business cant ignore blockchain any more hence its here to stay and grow. This technology has been referred to as the next revolution and although it’s only in the early stages for now.
Blockchain technologies record promises, trades, transactions or simply items we never want to disappear, allowing everyone in an ecosystem to keep a copy of the common system of record. Blockchain allows businesses to transact more smoothly and efficiently. To discover the power of business blockchains and distributed ledger technologies; you might have to wait for next blog post.
Disclaimer – All credits if any remains on the original contributor only.
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