What is blockchain technology – Blockchain Technology Guide

What is blockchain technology - Learn its importance in business

Blockchain technology uses a growing record of decentralized public ledgers that are immutable, transparent & connected by a crypto network. The blocks in a blockchain follow a time-stamping process. Here, the crypto tag focuses on storing the records of the previous block. To point out, data transfer happens only once across the network. Thereby, markedly solving the issue of double spending in business transactions. Most businesses make use of enterprise blockchain platforms to develop customized enterprise equipped blockchain solutions that help them altogether improve business value and scalability.

>> Know the overall possibilities of integrating AI with blockchain

Adopt blockchain technology to change the way you do business

Blockchain technology has no central authority, thus it delivers a transformational way for storing data on the data network. Blockchain data server focus on significantly storing pieces of information at multiple locations. Without the prior permission or knowledge of the person who created the data or record, data removal from the blockchain network certainly becomes impossible. From financial transactions and data sharing to business intelligence, blockchain technology altogether keeps track of the entire customer journey of any industry. The use cases of blockchain involve tokenization of digital as well as real-life assets, supply chain management, personalized retail experience and much more.

blockchain technology

HOW DOES BLOCKCHAIN

WORK ?

Blockchain is an interconnected network using a wide array of digital technologies. The creation of a new block in a blockchain network particularly follows four different criteria. Firstly, a data transaction must happen. Secondly, each data transaction requires the approval or verification of the concerned person in the blockchain network. Thirdly, a newly created block keeps each business transaction secured and verified. Lastly, a digital signature or crypto tag keeps each new block secure (known as hashing). The average block time needed to explicitly generate a new block is usually between 20-30 seconds. Along the edge, to get a clear view of the blockchain network you need to be aware of the following terms.

Distributed Ledger

A distributed ledger is an interconnected database of a chain of blocks (data or participants) held in a large network. Each block in the blockchain network is unique, immutable and decentralized.

Cryptography

Cryptography in blockchain is a method of encrypting and decrypting data using complex mathematical algorithm called cipher. This allows to keep the data viewable to the recipient only.

Digital signature

Each data transfer in a blockchain involves a digital signature or private key that is unique to the user. This digital signature prevents any other person from making changes in the data. 

Node application

Node is a device used on a blockchain network that keeps a copy of the blockchain during a data transfer. Nodes are distributed in a tree structure called binary tree.

Hashing

Hashing is the process converting an input data value into a crypto output by means of a mathematical algorithm. It prevents the input value from being decrypted by fraudulent practice.

Consensus mechanism

Consensus mechanism creates an undeniable system of agreement between devices connected in a blockchain network. This prevents a single entity from collapsing  the whole system.

Proof of stake

Proof of stake (POS) is a type of consensus mechanism used to validate a block in a distributed network. Here the creator of the new block is determined by random variables like wealth, age etc commonly known as stake.

Delegated proof of stake

Delegated proof of stake (DPOS) is a consensus mechanism that uses real-time voting & social reputation to achieve consensus in the distributed network. Here each holder of a token has a certain level of influence on the network happenings.

Proof of work

Proof of work (POW) is a time consuming and difficult to produce piece of data that could be easily verified by other person as long it meets certain criteria. The process is most commonly known as mining.

HOW DOES BLOCKCHAIN

HELP YOUR BUSINESS ?

Enhancing business productivity

Blockchain technology shapes your business processes to bring out the maximum potential from each department through shareable insights, optimizing business environment, perfect coordination with both internal as well as external team & building competent skills for employees. Blockchain delivers more business value by turning bottom line business predictions into reality.

Friction less supply chain management

Blockchain solutions transform the trade in the global economy by bringing traceability and transparency across global supply chain networks. Use of distributed public ledger in a supply chain network enables each player instant access to real information in a supply chain. Thereby delivering seamless inventory management, improved process automation and much more.

Minimizes business risk involved

Blockchain helps to make intelligent risk-aware business decisions for industries by meeting the right regulations and compliance requirements. Identifying business risk helps to unlock potential business opportunities, build trust, improve business performance and gain loyalty. Blockchain even allows users to make an informed decision for better credit control in the banking sector.

ARTICLES,

TRENDS,

AND NEWS

Know how distributed ledger technology implements collaborative strategies for industry-wide business transformations. Smart ledgers influence business transactions carried out in real time. Decentralized technology significantly delivers better reliability & credibility between business partners & customers. Another key point is that efficient database replication and reliable mathematical computation help blockchain network maintain better data quality. For business transactions across international borders, Hyperledger fabric is the best-suited enterprise blockchain platform. Learn how accubits blockchain expertise enables businesses to straightaway stay connected through data storage and cryptocurrency exchange products and services.

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WHITEPAPERS,

CASE STUDIES,

RESOURCES

Read more White papers, research reports and resources about how blockchain is transforming the business industries. Permissioned blockchain focuses on access control layer for controlling user access. It can help a business increase sales, improve customer experience, automate work processes, provide predictive analysis, etc. From conversational tools to driverless cars, distributed ledger technology in various shapes and forms is transforming industries.

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Blockchain technology would disrupt industries in an unprecedented manner. The more accessible, secure and reliable the available information is, the faster and more effective health professionals and health organizations can act. 

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BLOCKCHAIN FAQ ?

Is blockchain a technology or a theoretical concept ?

Blockchain is not just a theoretical concept to begin with in the modern world. It is unquestionably, a disruptive technology that changes the face of the whole business. In terms of functionality, blockchain is just a distributed public ledger that stores a growing list of records in a chain of blocks during a business transaction or data transfer. Blockchain technology is the most secure one because, every block of data is decentralized, transparent and immutable. Each change on a block significantly initiates the creation of a new block. Rather than overwriting the existing block. The chain of blocks allows viewing each change separately. This makes the blockchain technology an anti-fraudulent one. Bitcoin is the most used practical application of blockchain technology. Bitcoin uses blockchain technology to handle monetary transactions but the real potential of blockchain is much more.

What are the three pillars of blockchain?

The three main pillars of blockchain technology are:

  • Decentralization - Decentralization in blockchain means that it is not governed by a central authority, this makes the system more fair and secure. Here rather than depending on a central authority to perform a transaction or data transfer, blockchain uses consensus mechanism to record data across nodes of network to actualize a transaction or data transfer in a secure & irrefutable way.   
  • Transparency - Blockchain provides a way to conceal the identity of a transaction block so that the public address of the block is extremely difficult to trace out. Here the real meaning of transparency, comes from the fact that each asset or data involved in the transaction is open to viewing. But only the creator of the block could perform such functions. This makes a blockchain both secure & transparent as a whole. 
  • Immutability - Immutability in blockchain implies that any data or information that is once recorded in a blockchain could never be tampered with by any external means. Here a cryptographic method conceals each stored data using crypto hashing function to keep it secure. The immutability nature of a blockchain technology makes it a great fit for banking transactions, patient record handling, land registry management systems and much more. 
How important is hyperledger fabric in blockchain?

Hyperledger fabric is an undeniable standard for enterprise blockchain platforms. It is a collaborative effort of the Linux Foundation. It allows us to create one or more enterprise-level distributed ledger in a blockchain network to satisfy specific day to day business requirements. 

The advantage of using Hyperledger fabric includes:

  • Firstly, perfectly controlled network
  • Secondly, concrete and secure transaction
  • Thirdly, tailor-made blockchain technology architecture 
  • Fourthly, improved scalability and accountability
  • Lastly, makes it easy to program and implement in all enterprise systems
What are the different types of blockchain networks?

There are exactly four different types of blockchain networks based on its usage:

  • Public blockchain - Public blockchains have no restriction or control, anyone with network access could become the creator of a block (associate themselves with the consensus mechanism) to perform a transaction or data transfer. One of the most well known public blockchains are Ethereum, Bitcoin, Dash, Factom, etc.
  • Private blockchain - Private blockchain focusses on a centralized blockchain network rather than a decentralized network. Enterprise businesses that run internal business operations using their own cryptocurrency make use of private blockchains. Here, the blockchain acts just like a distributed or shared database. Some well known private blockchains include Multichain, Blockstack, etc.
  • Consortium blockchain - Consortium blockchain is a semi-decentralized blockchain. Here one or more entities, companies or persons could serve as the central authority. The administrator of the new block in a blockchain controls the entry of participants or users (entry into the consensus mechanism). Here a few users are given read access to the new block. While some others are given write access to the new block. So, it is not a fully decentralized network. Some of the well-known consortium blockchains include Ripple, R3, etc. 
  • Hybrid blockchain - Hybrid blockchain is a combination of both private and public blockchain network. Here some of the characteristics stay as that of private blockchain while some other stays as that of a public blockchain. This feature of hybrid blockchain gives us an extra edge on what information needs to be made public and what needs to stay confidential. Hybrid blockchains aim at providing tailor-made solutions to specific business requirements. Here, the blocks don't need to run on private hash nodes or private networks. It uses an entirely decentralized network to run business operations. An example of a popular hybrid blockchain hosted on another blockchain network is Dragonchain.
What is level of impact that blockchain solutions has on the global market?

For blockchain technology cryptocurrencies like Bitcoin, Ethereum is just the beginning. In the very near future, many industry sectors like banking, messaging applications, hedge funds, infrastructure security, advertising platforms, wills, inheritances, land registry management systems and much more are going to controlled through blockchain technology solutions.

For instance, in the land registry management systems the administration of blockchain significantly delivers:

  • A record of the digital land registry
  • An assurance on land property ownership's
  • Smart contracts automation
  • Proper document validation
  • Enhances the trust between the parties involved
I need to more detailed information's on blockchain technology?

To know more about implementing blockchain into your business read it, Implementation of blockchain into business

--> Learn more from blockchain business implementation blog 

To know about capabilities & functionalities of Accubits Blockchain Platform for improving supply chain management read our whitepaper, Blockchain for efficient supply chain system

--> Register and download our whitepaper on supply chain management system whitepaper

To get a clear idea on Accubits expertise on blockchain solutions visit our page, Blockchain solutions

--> Visit the blockchain solutions page

To get a clear idea on how to jump start your business operations using blockchain visit our page, Digital transformation using blockchain solutions

--> Visit the enterprise blockchain solutions page