What is Blockchain? And its uses.
What is blockchain?
First of all, we are going to define what BlockchainX technology is in a simple way. This network allows operations to be carried out between the different parties involved without the intervention of third parties, since it is carried out directly between them (from node to node).
Its name is given because all the information is stored in blocks that are intertwined with each other through a cryptographic security system, forming that “chain”. This way of storing information is much safer than traditional databases since here the information is never deleted, but rather it is added in new blocks. In this way, to modify one of these blocks it would be necessary to modify all the previous ones, which makes them virtually inviolable.
Main characteristics of the blockchain.
Decentralization is the essence of this technology. The information stored on the chain is shared among the entire blockchain network, preventing part of the information from remaining in the hands of only one of the parties.
Immutability implies that information cannot be changed (either by mistake or in bad faith). This means that all the information in the chain, such as receipts for payments or financial transactions, remain immutable in the chain thanks to the cryptographic protection algorithms (the so-called cryptographic hash functions ).
And finally one of the most interesting features offered by this technology is transparent.
These characteristics of the blockchain make its application allow full traceability of any product or component, keeping all the information truthful, reliable and accessible to all parties involved, Token Swap Platform Development thus eliminating a very common source of disputes. Something that in current supply chains is very difficult to achieve. We are going to delve deeper into how blockchain can revolutionize supply chains.
Advantages offered by the use of the blockchain in supply.
Blockchain can certainly improve all these negative aspects of supply chains. Below we highlight 5 of the main advantages that the blockchain offers in this area.
1 – Greater transparency in information.
Transparency in the data throughout the entire process allows for very clear traceability, increasing confidence in the products and their origin. All movements are public and the parties involved can consult this information, but at the same time the specific details of these operations remain private. In this way transparency coexists with privacy.
2 – Greater connectivity.
The blockchain network, being delocalized, can include all organizations and people regardless of their geographical location. This also influences its level of security, since no organization has the data in its possession exclusively.
3 – Greater information security.
Data storage is also assured as the information is stored in a decentralized P2P network. This offers greater protection against cyber attacks and protects them against technical network problems, fires or any problem of a physical nature, which allows cost savings by being able to dispense with backup copies, audits, etc.
4 – Greater possibility of technological innovation and digitization.
The blockchain along with other technologies that will be very present in the coming years will allow companies to further develop and automate . The combination with IoT devices could allow all data to be collected on the blockchain automatically and transparently.
5 – Greater financial savings.
Blockchain will make it possible to eliminate costs associated with physical or cloud server installations for companies to store their information, without losing security and facilitating data analysis.
