Today we are following up on last month’s article on the blockchain by delving more into the various sectors that utilize blockchain technology. We want to take our current focus onto blockchain classifications, networks, and possible implementation of blockchains in different professions and industrial usages. We will discuss what it is, how it works, and how it can be applied.
The blockchain and how it can relate to business
The blockchain is representative of a paradigm in the way information is shared. It has the potential to reduce overhead, increase oversight and security for record keeping, and reduce the costs of financial transactions. The implementation of blockchain technologies enables businesses to execute deals and legal contracts simply with the blockchain as a facilitator.
Here are some details to learn more about the potential of utilizing blockchain technology.
Public blockchain and known participants
Public and private blockchain can be utilized only by those designated allowed to participate in the network. The network typically has an incentivizing mechanism to encourage usage and appeal to participants to join the network. Those within a private blockchain can execute consensus protocol and maintain a shared ledger within the confines of the private company, as a system.
On the other hand, a public blockchain network is entirely open and anyone can join and participate in the system to approve the data. As an example, cryptocurrencies like bitcoin are the most extensive public blockchain networks in use today. As a public blockchain, it promotes openness, neutrality, and freedom to be fully decentralized without the backing of any government.
Six classifications of a blockchain
Blockchain enables consensus and increases the quality and productivity of any business by tracking all elements of a supply chain. It allows entries into a database where no one can apply changes without meeting and fulfilling specific conditions. Here are six different classifications of blockchains:
Currency as electronic cash systems without mediators
Infrastructure for payment remittances, or sending money in payment
Digital exchanges of information
Digital identity that requires digitally signing to reduce fraud
Verifiable data for the authenticity of info or processes
Smart contracts that execute without a trusted third party
Four principles of blockchain networks
Distributed – you can have access to all the peers that are participating in the system. A distributed Blockchain network is decentralized, and every computer on the network has a copy.
Public – the participants or actors in any transactions are hidden, but all operations are open to everyone to read. It is accessible to anyone with adequate technology, which creates the ability to resist hacking due to its openness.
Time-stamped – a record of dates and times of all transactions are in plain view; every participant can see all account balances and the movement of any deals.
Persistent – because of consensus and the digital record, blockchain records last forever.
Possible uses of the blockchain by industry
Below are some of the industries we will begin exploring here at Marcus Coaching with our clients.
Accounting– For auditing and fraud prevention purposes. It secures information and reduces alterations and errors.
Aerospace– It allows for the locating of parts and chains of ownership by improving how companies track data through the shared information provided by suppliers and partners.
Energy– Creating smart metering and decentralized energy grids by enabling peer-to-peer energy trading where energy consumers can become energy producers by selling excess power back to the network.
Healthcare– Medical devices and better sharing of data between healthcare providers leading to higher probability of accurate diagnoses and effective treatments.
Finance– Create a secure and convenient alternative to remittances and currency exchange at a fraction of the costs. In trade, finances blockchain enables increased visibility and trust across participants by reducing delays, fees, and manual effort.zz
Real Estate – It speeds up the buying/selling property by removing the current middlemen in real estate. It also reduces the rates of fraud, which is currently rampant in real estate.
Education– Better managing of assessments, credentials, and transcripts by creating a secure and publicly accessible record of academic qualifications. It is a useful way to cut down administrative costs to verify degrees, and it keeps degree records more secure.
How can you use the blockchain?
There are many opportunities for this new technology to change, build, or grow a business. Blockchain technology has a tremendous potential to revolutionize your industry even though it may be disruptive, but is it? It isn’t disruptive as it is a new way of removing the middlemen via a trusted system.
What can the blockchain do for your business? Contact us today to open a conversation about implementing blockchain in your business.