Epazz: Blockchain technology will change the way you do business

The term “blockchain technology” became popular recently and has taken many industries by storm. Although a complex concept, it is undeniably valuable for transforming various processes in many industries.

At its core, it is a promising technology that can handle many security risks. As the world becomes more dependent on data, companies face greater challenges in fraud and transparency. Blockchain can provide the potential solution to these challenges and more.

Iintroducing Blockchain technology

In a nutshell, blockchain technology is essentially a database or ledger that computer network nodes share. It stores transaction information in a digital format through a decentralized record of transactions, guaranteeing data security without third parties.

The difference between standard databases and blockchains lies in the structure. With the latter, data is collected in “blocks” filled, closed and linked to previously filled blocks. Once each “block” is filled, it is irreversible, given an accurate timestamp and added to a chain.

Blockchain technology boils down to “chains” consisting of several blocks, each block containing three elements:

• Data – The information in each block

• “Nonce” – An integer that is randomly generated when a block is created. This number is only used once, hence the name.

• Hash: “Hash” is a number generated when the block is created and permanently associated with the nonce.

What are the different types of blockchains?

By using a blockchain explorer, it is possible to check the various details about specific blockchains, including important transaction data. Many types of information, such as rich lists and hidden messages, are also accessible using an explorer.

Browsing through the different blockchains, users can also see that there are a few different types with many applications:

• Private and public networks – Private blockchains work well for closed enterprise networks to customize accessibility and other security options. Meanwhile, public networks use a peer-to-peer network to store data.

• Consortium Blockchains – Consortium blockchains have both private and public components and tend to be more complex to set up. They offer better security and are an excellent choice for collaborative organizations.

• Permitted networks – Permitted networks are private chains that only authorized people have access to. Also known as hybrid blockchains, they offer better structure when providing user authorization and access to specific transactions.

How will blockchain technology improve my business?

Technology can significantly leverage blockchains, whether it’s cloud-based businesses, digital wallets or industry-specific software.

This is referred to as “collaborative technology”, which aims to lower the “cost of trust” while providing a higher return on investment. The reduced costs of trust also reduce the long-term costs for many businesses in terms of maintenance.

On top of this, there are many benefits that blockchains can offer, such as:

Iincreased security

The main appeal of a blockchain wallet is to use a unique digital signature to conduct fraud-free transactions. Without the authorized signature, users cannot change any data.

This has many uses in addition to cryptocurrency. Because the data is stored over a network of computers, it is almost impossible to hack. Information storage is more secure since stored data is anonymised and locked behind a unique signature.

Decentralization

Blockchain’s decentralized nature has many advantages for security over traditional technology and software.

In addition to enabling trust, blockchain software enables sharing within an ecosystem. Transactions are also carried out between cooperating users. The resulting transactions are much smoother, safer and faster than traditional methods.

Automation

Blockchain software is incredibly lucrative due to automation. Blockchains can instantly generate various actions, events and payments without requiring manual input.

Transactions can happen in seconds depending on the amount of data and traffic. In many cases, it can track transactions faster, ensuring transparency and minimizing fraud.

Reduced cost

Because of its efficiency in processing transactions, blockchain’s properties make it excellent for reducing manual tasks.

With blockchains, organizations can audit and change data more efficiently to streamline clearing and settlement. Blockchains can help businesses save by forgoing the need for third-party vendors that traditionally perform these processes.

The bottom line

While relatively recent blockchain technology can provide industry-specific solutions to current problems in the private and public sectors, it is particularly appealing when it comes to data security, making it ideal compared to traditional databases.

This technology has fewer vulnerabilities and offers other benefits such as automation and transparency. Participants can see all activities in any blockchain network without changing them, and the sale happens with minimal input.

Overall, the greater efficiency blockchains offer means businesses can become leaner and more efficient. This technology behind the streamlining of repetitive and everyday processes provides room for decisive growth opportunities.