If you have read through many articles stating ‘Blockchain Simplified’ and you still don’t understand it, you have reached the right place. This is what we are calling Blockchain for Dummies.
Let’s simplify it
Imagine a top-secret agency message that needs to be communicated from one person to another. Now, to be able to pass this message, someone physically needs to go communicate it from one person to another. How easy is it to get hold of this person and get them to reveal the message? Now let us talk about a more security proof way of doing this. You distribute bits and pieces of this message amongst various persons and send them separately to deliver this message with there being no direct way to be able to link them. In this case, it is almost impossible to be able to get hold of all the persons and reveal the message. This is exactly how a blockchain works.
So technically speaking.
Blockchain, simply put, is a digital warehouse of information in the form of numerous blocks. These blocks are linked to each other to form a chain of information, thus leading to the formation of a blockchain.
Why should I care?
- It can be private too
So you believe that the nature of your business or the requirement is very private blockchain just seems like it puts everything in open. Here is some news for you, Blockchain technology can also exist privately. What this means is that if you want to hold your information on non-public locations and still want to use blockchain, you can create a structure where nodes are simply points in the private network and the blockchain acts similarly to a distributed ledger.
- It is across industries
Blockchain, since its inception, has been used across industries ranging from insurance to supply chain. This technology is so robust that it can be used in the simplest of business transactions as much as it can be used in complicated dealings and settlements.
- The information is distributed
With no single entity holding the entire information, it ensures that the data is accurate and secure. As a result of this, the information also becomes tamperproof which ultimately leads to information security.
Does it suit my business?
If you have any of the following business requirements:
- Payment processing and money transfers
- Supply chain
- Property documentation and real estate
- Tracking of goods or activities
- Claim settlements
Having listed that, we would also like to mention that blockchain is a really broad world, a lot of which can still be explored and put to use in various forms.
Watch this space for more on the blockchain