Blockchain technology is one of the more recent changes to the IT industry in the last few years. A blockchain is a type of dispersed record that’s impossible for people to hack. Instead of just relying on one database, a blockchain is spread between different people in a similar way to how bit torrents work. Once data is written to a blockchain, it’s stored there forever. It effectively makes it a trustworthy, hack proof way to store interoperable data.
So, what makes blockchain different in the IT world?
The blockchain network has no central authority — it is the very definition of a democratized system. Since it is a shared and immutable ledger, the information in it is open for anyone and everyone to see. Hence, anything that is built on the blockchain is by its very nature transparent and everyone involved is accountable for their actions.
A blockchain carries no transaction cost. (An infrastructure cost yes, but no transaction cost.) The blockchain is a simple yet ingenious way of passing information from A to B in a fully automated and safe manner.
How Does Blockchain Work?
Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.
Information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
Blockchain and the mainstream
There’s a wide range of industries that could utilize smart contracts – finance, healthcare, logistics, and many others. It implies the elimination of third parties and bringing more transparency to the process. Blockchain allows businesses to track all the data whenever they need and keep it under control, minimizing the likelihood of fraud. Another significant advantage is speed. As opposed to traditional contracts, smart contracts allow conducting all the operations in a split second, with no third parties involved. 1`All in all, this enhances the efficiency of making transactions and closing deals.
Blockchain With IoT
Blockchain will also lend itself nicely to the Internet of Things (IoT). The concept of distributing trust to a peer-to-peer network is and will continue to be essential in the world of IoT, this means creating an edge economy that allows apps to run anywhere. It also means, moving applications that run in data centres, where there is a single owner of all the infrastructure that provides the app developer with its entire virtual environment, to places where infrastructure is not owned by a single party but the services and data exchanges must be trusted and not spoofed.