There is no denying that Blockchain technology is here to stay. Most of the big enterprises have already implemented the technology and even small companies are now swiftly adapting it. If you are looking to start a new project, have a look at these top 10 blockchain development companies in Winnipeg.
The Blockchain (or blockchain) is a shared database that functions as a book for the record of buy-sell operations or any other transaction. It is the technological basis of the operation of bitcoin, for example. It consists of a set of notes that are in a shared online database in which operations, quantities, dates and participants are registered by codes. By using cryptographic keys and being distributed by many computers (people), it presents security advantages against manipulations and fraud. A modification in one of the copies would not help, but the change must be made in all copies because the base is open and public.
All the blocks that make up the chain, have a hash (numerical password) of the previous block, the blocks are sorted in the chain in chronological order thanks to that hash all the blocks are referenced by the block that created them, so only Blocks containing a valid hash are introduced into the chain and replicated to all nodes. Thanks to this system it is practically impossible to modify a block that has been during the chain for a certain time.
The “mining” nodes are responsible for creating the blocks that form the chain, adding to each of them the corresponding hash and all the new transactions that have been introduced into the network. In this way we can say that the blockchain allows us to keep a “public accounting” published in a totally transparent way of all the transactions of the network, with almost no possibility of fraud, congestion or loss of data and totally traceable.
Disruption in the world of finance
The blockchain is a method to record data, a kind of Excel file. But it is shared: there are copies on the Network and on the computers of each participant in the creation and modification of that file, which cannot be accessed by anyone without permission and in which information cannot be deleted, only new records can be added. This allows the community to protect the data it contains, warning of possible mismatches resulting from each update. Thanks to this, the integrity of the document is protected.
The way the blockchain works allows all participants to know the movements and changes that have been made in the document, as well as its author. Being based on mathematical operations, the blockchain is so far one of the safest methods that exist to create, modify, share and store information, so it could be applied to any field that needs to perform any of these actions, especially if in them Multiple users have to participate.
What is Blockchain technology for?
The enormous cost savings that Blockchain technology entails, makes its applications to everyday life infinite and also desirable and convenient. Let’s see below the main uses:
Financial services:
Beyond cryptocurrencies, the advantages of Blockchain lie in the traceability of financial operations or the fight against fraud.
Health System:
Improving the management of electronic medical records, guaranteeing their integrity and privacy, enabling access only by authorized personnel.
Manufacturing:
It can be used to guarantee the traceability of any good, from its manufacture, to its sale or resale, or the prevention of fraud and forgery.
Logistics:
Expediting all the procedures involved in the transport of goods and merchandise, both its traceability and security, customs clearance, etc.
Government:
Forming the basis of all public records (health, transportation, justice, legislation, voting, taxes, pensions, etc.) as is the case in Estonia, a country at the global forefront in this field.
Donations:
To provide greater transparency in donations to non-profit entities and their destination to specific projects.
Retail:
Enabling advanced customer loyalty systems, in addition to decentralized markets for the exchange without intermediaries of goods and services.
Digital Identity:
An identification system can be built in which it would only be necessary to provide documentation once, to then be able to be identified by public administrations and private companies, when managing procedures or contracting services.
Contracts:
In the management of the so-called “Smart contracts” between customer and supplier, it is well understood what Blockchain technology is for, since its payment would be activated automatically when both parties agreed that certain conditions had been met.
Cultural Products:
To fight against piracy, enabling monitoring systems of intellectual property rights and their related payments, in sectors such as music or photography.
Insurance:
Enabling what is known as “parametric insurance”, that is, those in which the occurrence of a given circumstance automatically results in payment or compensation.
