Things all businesses should know about Blockchain technology

We’re now living an ever increasingly digital world, in which technology is constantly advancing and evolving at a pretty astonishing rate. Because of this, it can be difficult for businesses to keep up with the ever-changing world of modern technology and computing. One piece of technology that is proving to be a real game-changer in the business world however, is Blockchain technology, and it is Blockchain that we’ll be focussing on here. Blockchain is a digital database of information and transactions, which can be shared amongst countless devices with online internet connectivity. Every time an individual uses Blockchain for a transaction like sending funds, this transaction forms what is known as a block, which is then added to the chain of other transactions made by other people. Now that we’ve covered the basics, let’s take a look at a few more things that businesses should know about Blockchain technology.

It is NOT exclusive to bitcoin– Contrary to popular belief, Blockchain is not synonymous with Bitcoin, as it can be utilized in a variety of other ways as well. Whilst it is true that Bitcoin digital currency is supported by Blockchain, and that Bitcoin relies almost exclusively on Blockchain, Blockchain has proved time and time again, to offer countless other functions and possibilities outside of the world of digital Bitcoin currency. In actual fact, it is Blockchain’s potential outside of Bitcoin, that makes it so important in the financial markets.

Blockchain can execute contracts – Whilst more and more businesses are becoming a great deal more technology based, when it comes to executing contracts, Blockchain technology can really prove its worth. You see, when smart contracts are in place surrounding various online transactions, as these contracts have been written in computer code, this means that computer protocols must enforce and facilitate the overall performance. Once a transaction has taken place, Blockchain has the capabilities of ensuring that all conditions placed into the smart contract have been honoured. If they have, the contract can be executed, but if not, Blockchain can put a halt on proceedings until the digital conditions have indeed been met. It may sound complex, but it is no different to any other contract, other than the fact that this one will be in cyberspace.

Transactions must be verified to increase the Blockchain – To ensure that all necessary requirements have been met, transactions have to be verified by independent third parties known as miners. As an example, for a transaction to be verified, a seller of an item must indeed be verified as the initial owner of what they are selling in the first place. Here, a verification will be carried out and will be bundled in order, into blocks of data for a specific number of transactions. Once they have been verified, they too will be added onto the chain of previous transactions, subsequently increasing the size and length of the blockchain. The more transactions that are verified and carried out, the longer the chain becomes.

Blockchain is highly secure – Another great thing to know about Blockchain technology, is the fact that it is highly secure. In a time when online cyber crime is commonplace, and where cyber criminals are seemingly becoming smarter by the day, it is vital that you remain safe and secure online, which is why Blockchain is so useful. The Blockchain, which is the now verified record of your transactions, is stored in multiple digital locations at once. Each time a transaction is made, it too is added to the chain, and it too is stored in multiple locations. Basically, it functions in a similar way to when people create multiple copies of deed packages, serving as historical evidence and proof of true ownership. The reason why this is so beneficial for security, is the fact that, even if cyber criminals were able to fraudulently alter one copy in one location, as there will be other copies in other digital locations, basically, this will just not be enough to cause you any lasting problems or worries.