Blockchain Technology

Blockchain

Hello Readers!!!  This issue we will be discussing a new technology getting a lot of attention in the technology world, this new technology is called Blockchain network.   The Blockchain  has been around for some time and been closely related to the Bitcoin.  First let’s delve right in the Blockchain technology.

Blockhain is like a digital ledger that provides a secure way of making and recording transactions, agreements and contracts or anything that needs to be recorded and verified and have taking place.

However, rather than being kept in one place like the more traditional ledger book, the data is shared across a network of computers.  This network can include just a handful of users, or hundreds and thousands of people, The ledger acts as a long list of transactions that have taken place since the beginning of the network, getting bigger over time.

A blockchain data consists of blocks and transactions.  Each block contains batches of transactions that are encoded and time stamped when the transaction took place..  When a transaction takes place, its details are encrypted and a unique multiple-character transaction number is generated, this number is recorded in a ledger as a placeholder.  All the users of the network will be able to see that the transaction but only the parties involved in the transaction can access and view its details.  When an update is made a new block is created with a new time stamp.

Look at the illustration below.

Block 1-à Block 2–à Block 3-à Block 4–àBlock 5–à Block 6

When a transaction is made it creates a block (Block 1), when an update is made on that transaction it creates a new block (Block 2) and links to Block 1 every time a newer update is made a new block is created thus  creating a chain or a “Blockchain”.  The highest block chain number has the most accurate data.  Before an update can be added to a block, the transaction must be validated by the other computers within the network.

The blockchain technology has been around for years and is most well-known use with Bitcoin, the virtual currency that came to prominence in 2008. There are many types on industries that are looking at the blockchain technology and a way to streamline their processes.

Let’s look at some of these industries

Financial -The blockchain technology is being used in the financial industry as a means to expedite the transfer of funds from one party to another.  By using blockchain technology, a transaction can take place without any intermediaries in place, because the transaction is done instantaneously between parties.  This could have an impact with financial services companies.

Insurance– Claims processing can be frustrating and a thankless procedure.  Insurance companies have to wade through fraudulent claims, fragmented data sources, or abandoned policies and process these forms manually.  The blockchain provides a perfect system for risk-free management and transparency.

Digital voting – Using blockchain offers the ability to vote digitally, but it’s transparent enough that any regulators would be able to see if something were changed on the network.  Digital voting is an easier and better way to cast your vote plus being assured that your vote truly counts.

Title Transfers – If you are buying or selling land, a house, a car, you will need to transfer or receive a title.  Instead of handling this on paper, blockchain can store titles on its network, allowing for transparent view of this transfer, as well as a crystal clear picture of ownership.

Music Industry – Companies have developed intelligent songs with smart  contracts built in, which enables artists to sell directly to consumers without going through a label, financial intermediary, or technology company.  This means the royalties and licensing agreements execute automatically and instantly and the artist gets paid first.  Media companies stand to lose or gain depending on how quickly they embrace this technology.

These are only some of the industries where blockchain technology has an impact.  Other industries are looking into blockchain as a way to streamline the process without incurring any additional costs. Blockchain is still in early development and could potentially change how business is conducted.

I hope that you found this information helpful.  Please feel free to forward to others.  If you would like to learn more on this topic or would like to request another topic for the future please contact me.

Until next time…Happy Computing!!!