Cryptocurrency may be in its infancy, but like the internet – the technology used to manage and distribute it – its adoption has been far-reaching and its implications are enormous. Today, business could not survive without the internet, and in the future, I can’t imagine a business not engaging with cryptocurrency, or one of its underlying technologies at least: Blockchain.
How Blockchain Technology works
Blockchain introduces a transparent and secure data storage and transmission technology which empowers people to exchange digital assets without intermediaries by:
– Building a complex distributed database
– Allowing decentralized trust through community validation
– Setting up a 3-step process: authorization, validation and securing within a block
– Providing interdependent data exchanges, which cannot be altered or deleted once a block is created.
The key benefits which will enable Blockchain to potentially transform business performance:
– Faster transaction times: in the context of financial Services and banks transactions between banks can typically take days for clearing and may be reliant on when the banks are open for business. A blockchain transaction is distributed across the network in minutes and will be processed at any time throughout the day.
– Massive Cost saving for industries: Maintaining different copies of the ledger across every node in the network means that the blockchain is better able to withstand attack. Even though one node was compromised by an attack, the blockchain would be maintained by every other node. In theory, this would mean that an attacker would take control of every node simultaneously, to corrupt the ledger.
– Increasing Security and resilience: Maintaining multiple copies of the ledger across every node in the network means that the blockchain is better able to withstand attack. Even though one node was compromised by an attack, the blockchain would be maintained by every other node. This means that an attacker would need to take control of every node simultaneously, to corrupt the ledger. This is not the case for a traditional ledger where an attack on a single trusted third party would bring down the record of transactions.
– Immutability and unchangeable: This is seen as vital key benefits of blockchain technology.
– Privacy and User anonymity: Buyers and sellers use anonymous and unique address numbers to process the transaction. While this has been criticised for giving rise to use of cryptocurrencies in illegal online marketplaces like Silk Road, it could be seen as an advantage if used for other purposes, for example, electoral voting systems.
– Smart contracts: A blockchain may be used to distribute a smart contract across multiple parties with the execution of the contract and the monitoring of compliance with its terms being recorded across every ledger.
We at Imperium Apps have already started to dive into the limitless world of Blockchain so expect big things coming. If you have an app idea that uses Blockchain, let us know, we might help you!