There are so many popular phrases thrown out by Bitcoin fans that it’s hard to know where to begin. One of the more interesting ones is “You know, blockchain is really valuable.” And that is probably true.
It is also much easier to elucidate than bitcoin. Basically, blockchain is a style of record of every transaction that has occurred involving a single bitcoin. Money moves in a similar way. For example, when you purchase your morning coffee, you place a dollar in the tip jar. At the end of the shift, the barista goes for a haircut and pays in money. These are two transactions for the same dollar bill.
Each time a bitcoin is used, a piece of code (called a block) is added to its identification code. The variety of blocks is called the height of the blockchain. The chain of transactions can then be traced, and the act of transacting itself creates a record. This is different with money, where there is no proof that it was you who put the money in the tip jar or that it was your specific bill that was then given to the hairdresser.
Real examples of using Blockchain technology in business
In the case of money, the creation of a transaction record (book) is often required by law, but this does not mean that each one parties involved do it. Both baristas and hairdressers have taxable income from the money you send out into the world, but that doesn’t suggest they’ll report it.
Electronic transactions are normally recorded, so if you employ an app on your phone to send a tip from your expense account to the coffee shop, the bank will robotically record what happened. Of course, you possibly can imagine all types of catastrophic events that could lead on to a bank losing all its data. Bank records also include the names of the parties involved and there could also be situations where records must be kept anonymously.
Blockchain was first introduced in the same paper which introduced bitcoin to the world, but otherwise there is no need to make use of bitcoin to make use of the blockchain. Since the person or individuals who developed bitcoin have never been publicly identified, there is no mental property issue associated with the use of blockchain. As a result, such serious corporations as IBM AND McKinsey & Company.
11 advantages of blockchain technology for small businesses
If your organization doesn’t use cryptocurrencies, blockchain probably is not applicable – at least not yet. When you first encounter this, you’ll probably be dealing with mental property or inventory management. For example, blockchain might be used to trace who uses a photo, helping an independent photographer control usage rights.
It may also create a strong supply chain for the transfer of hazardous materials, quite than relying on the signatures (and honesty) of everyone involved.
Most startups and entrepreneurs probably won’t be getting into blockchain any time soon, unless they’re working on a project that involves a much larger company. However, because it spreads through supply chains, the likelihood of encountering it increases. There will likely be various asset management and accounting applications used long after cryptocurrency fades from common memory.