Originally developed as an accounting method for the virtual currency Bitcoin, blockchains—which use what’s known as distributed ledger technology (DLT)—are appearing in a variety of commercial applications today.
Now, some are even calling it the most important invention since the Internet itself.
Blockchain is a distributed database that holds records of digital data or events in a way that makes them tamper-resistant. While many users may access, inspect, or add to the data, they can’t change or delete it. The original information stays put, leaving a permanent and public information trail, or chain, of transactions.
You can think of it like this: If the entire blockchain were the history of banking transactions, an individual bank statement would represent a single “block” in the chain. Put simply; blockchain is a record-keeping mechanism that makes it easier and safer for businesses to work together over the internet.
Currently, the technology is primarily used to confirm transactions, within digital currencies though it is possible to digitize, code and insert practically any document into the blockchain. Doing so creates a permanent record that cannot be modified; furthermore, the record’s authenticity can be verified by the entire community using the blockchain instead of a single centralized authority.
As mentioned earlier, the most famous application of the technology is Bitcoin, a currency system that has become remarkably successful among tech-savvy merchants. However, what makes things exciting, is that blockchain can be used for non-currency purposes as well.
Today, businesses of all kinds are getting creative with the blockchain ledger, as it can be used to record, track, and verify trades of virtually anything that holds value. From ride-sharing to cloud storage to voting, companies in all industries are beginning to see blockchain’s potential.
Since blockchain technology allows us to track all types of transactions more securely and transparently, the possibilities it presents across the supply chain are endless.
Every time a product changes hands, the transaction could be documented, creating a permanent history of a product, from manufacture to sale. This could dramatically reduce time delays, added costs, and human error that plague transactions today.
Cornfield & Partners can help you with subjects related to blockchain. To find out more about potential business opportunities, contact firstname.lastname@example.org or you can call us on +44 (0) 20 7692 0873.