Breaking Down The Basics of Blockchain
The blockchain is a fancy new buzzword that is disrupting the way we think about the Internet. But no one really knows what it is and how it can change the way we share, view, and interact with information. When it comes to any information on any device, it’s crucial that the data is accessible and protected. With blockchain, we might be one link closer to universal accessibility of information, across any industry. This innovation can revolutionize the development of future technologies by introducing automated updates.
As blockchain development continues, the internet we know today would look completely different. For now, blockchain is prevalent in the financial services in forms of buying and exchanging digital currency.The idea was originated by the infamously known creator: Satoshi Nakamoto. If you know anything about digital currency you know that Satoshi Nakamoto is actually a pseudonym but this name created: Bitcoin.
The blockchain is supposed to become an innovative infrastructure for a potentially new internet and could extend beyond just trading digital gold.
So, how does it work?
Information on a blockchain has no source and can’t be corrupted. There is no host, master, or server that parents it. Each device that the information is stored on has the most recent updates already in place. Anyone with access to it can change the file and in order to get total control over it, you will need to destroy a series of networks and devices. That task alone isn’t easy which makes blockchain databases extremely secure. Financial companies already use blockchains because it updates transactions and statements instantly, securely, and very quickly.
The best way to think about blockchain is Google Docs. With Google Docs, I and several other people can update, revise, or share the same document with all of its revisions to many other people. In a blockchain, any changes that happen within the Google Docs is updated to anyone who has access to it. We all have access to the information at the same time and can be on it at the same time. It also enables the ability for information to be transparent to anyone who has the access. That way instead of sending the same document back and forth, everything can be done in one place and you can see who/what revisions were made and when.
This erases the notion that information must be centralized and that data is all kept in one place. A network of computers and devices share the rights to all the information that’s being transacted within the network. It’s all monitored by a peer to peer basis instead of having a host. Anything that happens within that network affects the whole network. Larger companies and industries can widely benefit from this but small businesses also need to strategize ways to incorporate this innovative technology.
Essentially, your devices communicate on the same network all at the same time. This also means that artificial intelligence tools like bots and data automation become assets to your technology strategy. Centralized data opens a lot of threats to hackers to take data from one source but with blockchain, since all of it is distributed equally, the risk is reduced substantially. Traditional methods of securing networks use the typical “username and complicated password” while blockchain’s information is fully encrypted, making it more secure. The range of possible technologies developing because of blockchain is so extensive. It is going to change the way we visualize data, access it, and present it.
At Charlotte Consulting Group, we pride ourselves on being the expert in using innovation as the driver. Our experts can offer a way for you and your organization to use blockchain to further expand your business.