BlockChain is a shared, immutable Ledger that facilitates the process of recording transactions and tracking assets in a business network. And assets can be tangible ( a house, car, land) or intangible (intellectual property, parents, copyright, branding). Anything that has value can be tracked and traded on a block chain network, reducing risks and costs for all involved.
WHY BLOCK CHAIN IS IMPORTANT
Business runs on information, without information, a business won’t be on continuity. The faster the information is received and the more accurate it is, the better the blockchain is important for delivering that information because it provides quick, shared, palatable and completely transparent information stored on an immutable Ledger that can be accessed only by permissioned network. A blockchain network is capable of tracking orders, payments , accounts, production and much more.
KEY ELEMENTS OF A BLOCK CHAIN
DISTRIBUTED LEDGER TECHNOLOGY: All Network participants have access to the distributed Ledger and its record of transactions. With these shared Ledger, transactions are imputed only once, erasing the duplication of effort that is typical of traditional business networks.
SMART CONTRACTS: To speed transactions, a set of rules called a Smart Contract is turned on the Block chain and executed automatically. A smart contract can define conditions for corporate bond transfers, include terms for travel insurance to be paid and much more.
ENHANCED SECURITY: As it gets rid of the need for a central authority, one cannot just simply change any characteristics of the network to benefit them. Using encryption shows another layer of security for the system. Well, it is extremely secure because it offers a special Disguise-cryptography.
Cryptography technologies are aimed at ensuring complete or pseudo-anonymity. The primary applications of cryptography primarily focus on ensuring the security of participants and transaction, safeguards against double-spending and lack of influence of central authorities on operations. Every information on the Block chain is hashed cryptographically. In simple words, information on the network hides the true nature of the data.
TYPES OF BLOCKCHAIN
There are currently four types of Block chains.: They include:
PUBLIC BLOCKCHAIN: A public blockchain has absolutely no access restrictions. Anyone with an internet connection can send transactions to it as well as become a validator. Usually, such networks offer economic incentives for those who secure and utilize them.
Some of the largest most known public block chains are the Bitcoin blockchain and the Ethereum blockchain.
PRIVATE BLOCK CHAIN: This is permissioned. One cannot join or access it unless invited by the network administrators. participants and validators access is restricted. The terminology Distributed Ledger (DLT) is normally used for private block chains.
HYBRID BLOCK CHAINS: This has a combination of centralized and decentralized features. The nitty-gritty works of the chain can be varied based on which portions of centralisation and decentralization are used.
SIDE CHAINS: This is a designation for a blocked ledger that runs in parallel to a primary block chain. Entries from the primary block chain (where said entries typically represented digital assets) can be linked to and from the Side Chain: this allows the Side Chain to otherwise operate independently.
HOW DOES THE BLOCKCHAIN TECHNOLOGY BLOCKCHAIN HELP A BUSINESS
- BlockChain has the ability to streamline trade, finance deals and make the process easy across borders. It enables enterprises to more easily transact with each other beyond regional or geographic boundaries.
- Being part of a blockchain eliminates the necessity of a middleman for many varieties of contracts. The technology offers immutable records, verification of identity and their ability to establish terms.
- By spreading its operation across a network of computers, the block chain allows bitcoin and other cryptocurrencies to operate without the need for a central authority. They not only reduce risks but also eliminate many of the processing and transaction fees.
- BlockChain nature also cuts costs for organizations. It creates efficiencies in processing transactions.
- It provides multiple advantages to businesses and introduces new ways to revamp existing business models.