You will probably have heard the words crypto and blockchain thrown around over the last year or so. It seems to be a craze. The latest wave of something that people are getting passionate about. Everyone chasing the dream and wanting a bite of the cryptocurrency apple.
The truth is that the crypto world is still relatively obscure to most beyond these terms. Sure, most people can tell you what Bitcoin is. But that really does sum up the average person’s knowledge. Blockchain technology for businesses is a crucial part of this largely unknown world and it is potentially going to have massive repercussions in the real world.
Here’s the lowdown on Blockchain.
- Ledger .It serves as a ledger, recording data securely about transactions. The data is secured using cryptography. Each transaction forms a block, and each block is then added to the chain. It is the online equivalent of stringing pearls on a necklace.
- Can’t manipulate. Like a pearl it is not possible to manipulate the contents of a block. So, with a pearl it is either a natural pearl or it isn’t, with a block you can’t alter its structure. This means the data held on each block is preserved indefinitely.
- Orphans. As blocks increase the chain lengthens. Occasionally there will be data sets or transactions that divert off the main chain. This could be for any number of reasons but most commonly it is because they don’t fit the original criteria of the chain. These sub blocks can then form smaller chains. These are called orphans.
So hopefully, that has enlightened you about how the blockchain works. And what it would look like if it was a physical entity. It is very much like your transaction history on your bank account, all categorised into blocks and stored securely in a way that people can’t access or manipulate it.
That is the key. The power to be free from manipulation.
And, that is why businesses everywhere are likely to adopt the Blockchain or a variation of the technology to record the data they need within their supply chains. Blockchain technology for businesses will be very lucrative.
So why hasn’t it happened yet?
Well the answer is both convoluted and simple. The simplest answer though is that the Blockchain is not a very quick chain. It takes time to record the data and it takes time for each block to be added. When you take into account the sheer volume of transactions any business makes in say a day then blockchain technology for businesses becomes fraught with problems.
This is partly the reason why there have been so many questions asked of Bitcoin’s credibility. It relies on the Blockchain and the Blockchain is notoriously slow. Meaning people would rather invest in other crypto-currencies that they can exchange faster.
Blockchain technology for businesses is being refined, it is being streamlined. Currently there have been other crypto-currencies using faster variations of the Blockchain or alternate versions. It could, in theory, if fast enough, be integrated to secure the data of all financial transactions made, everywhere, all over the world. Once financial institutions put this into practice the larger businesses tend to follow and this filters down until you have small to medium enterprises all using Blockchain technology for businesses.
Will we see it happening?
As it stands, it is at the toss of a coin. Currently the technology is robust enough to function but not fast enough to function. Businesses everywhere are therefore reluctant to place this otherworldly technology at the heart of their structure.
It is more likely that the Blockchain technology will pave the way for a new type of ledger altogether. One that takes what Blockchain has done and builds on it so that businesses have a technology they can integrate with no hassle. That is where the safe money would lie.
Blockchain has done a lot of the groundwork needed to revolutionise business transactions and supply chains, it is now that the world awaits an innovative successor to take the mantle and form a new and exciting core to businesses the world over.
It will happen one day, with some form of new secure ledger, that is almost a certainty. Is it going to be blockchain for businesses? Only time will tell.