Strong Backbone for Businesses – Stuart Haber 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 a foundation of Blockchain.
What is Blockchain Technology? How one blockchain can have Infinite possibilities & opportunities in hand in this red ocean market world.
Essentially what it means in my own personal understanding is Blockchain is a tool to build and measure trust on one hand but on otherside it allow us to put our money on digital format to be tracked.
Blockchain as on date is mystery story for many. 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.
So are we moving from centralise model to decentralise model for all our business!!
We have heard a lot that it yields strong potential in the global supply chain. It became 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 what is blockchain?
It is a protocol like any other and reminds me of swarm intelligence. The architecture of blockchain presents a more secure way of saving and securing data. On one hand, this can reduce fraud on other hands it reduces transaction processing times and fees in the financial domain. Blockchain in the 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 the financial world
Blockchain – Not Bitcoin
Bitcoin is digital money. A virtual currency that was the first successful blockchain product.
The blockchain is the technology that enables cryptocurrency and provides solid & secured foundation like bitcoin, ethereum, ripple etc. Let’s 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 the financial domain areas below.
- Online voting to address voter fraud.
- Can be used as a 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
Blockchain allows businesses to transact more smoothly and efficiently. Transform your business and digitise your transaction workflows.
To illustrate it has many examples like above; at the same time, it has many other use cases where transparency and security are lacking.
Backbone for Businesses
Blockchain can work as a strong backbone for businesses. This can even be called an immune system of any good business of today. It is kind of distributed digital ledger technology as a powerful tool getting attention at a rapid pace. It’s like featuring a product that contains small blocks of the brain in form of dust in contrast.
The blockchain is probably the most revolutionary innovation of the last decade. We are living in Contracts aka the third generation.
- Smart Contracts – The term was first coined in 1993. SmartContracts become a buzzword in 2013 when Ethereum project about “Decentralised Platforms'” kicked in. Where it was all about the applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
- Cloud storage – This as another application that businesses can take advantage off. The offering is all about secure cloud storage while decreasing dependency.
- Hyper-ledger – 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 organisations and individuals alike must trust.
Smart Contract became hero thereafter in modern businesses across the industry. The ethereal-enabled internet-of-things platform uses this application to allow a customer to rent bicycles where they can unlock a smart lock after both parties agreed on the terms of the contract. This is an example from one of the companies (Slock) project.
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 the whole of Blue Ocean is certainly yours. Now let’s take all action frameworks one by one.
- The 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.
- The second action – Reduce: Which factors should be reduced well below the industry’s standard. An easy one to guess; cost is your answer. it involves value innovation, which gives organisations 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 reputable with data remaining secure.
The blue ocean shift strategy allows you to sail freely and therefore to grow your business smoothly without any challenge.
Points to Note:
All credits if any remains on the original contributor only. We have covered all basics around data analytics for digital businesses with blockchain. In the next upcoming chapters will talk about implementation, usage and practice experience for markets.
Books + Other readings Referred
- Research through open internet, news portals, white papers and imparted knowledge via live conferences & lectures.
- Lab and hands-on experience of @AILabPage (Self-taught learners group) members.
Feedback & Further Question
Do you have any questions about AI, Machine Learning, Data Science or Big Data Analytics? Leave a question in a comment or ask via email. Will try best to answer it.
Conclusion– Blockchain allows you to transform your business and digitise transaction workflows. Finally, as a result of this cutting edge technology importance business cant ignore blockchain any more hence it’s 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 the next blog post.
#MachineLearning #DeepLearning #ArtificialIntelligence #SwarmIntelligence
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Hi Vinod, thank you for the insightful article. I’ve got two questions,
1. Do you foresee any large enterprises in the fintech business, particularly those in Zimbabwe, moving forward with the adoption of blockchain as the backbone of their financial systems? I’ve read elsewhere that MoneyGram and Western Union are trialing Ripple’s blockchain offering.
2. Are peer-to-peer mobile money exchanges, more so those in Zimbabwe, in any threat from the rise of border-less peer-to-peer crypto-currencies such as Bitcoin?
Your thoughts and opinions are most welcome.
Thank you for the question. I will not respond on questions-2 for various reasons as its not technical in nature. Also my response are border less as per disclaimer in my blog. On question-1 there are many large organisation have started adopting it like IBM, Microsoft, Facebook, Western Union and Money Gram …… Blockchain is considered as safest technology of today where no hack has been reported so far.
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I totally agree with what you said. I also think that blockchain can work as a strong backbone for businesses so I think that we definitely need to have more knowledge about it. Thanks for sharing this article.
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