A Blockchain technology, originally block chain, is a growing list of records, called blocks, which are linked using cryptography. … For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for inter-node communication and validating new blocks.
Invention of Blockchain Technology
It was in the year 2008 when a pseudo name of an individual or company called Satoshi Nakamoto invented the Blockchain technology as the public transaction ledger of the cryptocurrency bitcoin. The invention of the blockchain for bitcoin made it the first digital currency to solve the double-spending problem without the need of a trusted middle party or central server.
The bitcoin design has inspired other applications, and blockchains which are readable by the public are widely used by cryptocurrencies.
Types of Blockchain Technology
The blockchain technology is considered a type of payment rail. Private blockchains have been proposed for business use. Sources such as Computerworld called the marketing of such blockchains without a proper security model.
On the market there three types of blockchain networks namely public, private and consortium.
A public blockchain has absolutely no access restrictions. Anyone with an internet connection can send transactions to it as well as become a validator (i.e., participate in the execution of a consensus protocol). Usually, such networks offer economic incentives for those who secure them and utilize some type of a Proof of Stake or Proof of Work algorithm.
Some of the largest, most known public blockchains are Bitcoin and Ethereum.
Private blockchain technology is permissioned. One cannot join it unless invited by the network administrators. Participant and validator access is restricted.
This type of blockchains can be considered a middle-ground for companies that are interested in the blockchain technology in general but are not comfortable with a level of control offered by public networks. Typically, they seek to incorporate blockchain into their accounting and record-keeping procedures without sacrificing autonomy and running the risk of exposing sensitive data to the public internet.
A consortium blockchain is often said to be semi-decentralized. It, too, is permissioned but instead of a single organization controlling it, a number of companies might each operate a node on such a network. The administrators of a consortium chain restrict users’ reading rights as they see fit and only allow a limited set of trusted nodes to execute a consensus protocol.
Globally thousands of people and companies are using Blockchain technology, it’s advancement is found in agriculture sector, mining industry, banking areas etc.
Numerous firms face problems when doing financial transactions, problems ranging from delay due to bureaucracy systems used as there are involvement of middle party such as central bank in traditional ways of sending funds, less efficiency, high rate of theft and delays.
Blockchain Technology in Mining Industry
The Blockchain technology is used in the mining industry where is used to monitor cobalt mineral resource from the mining site to the manufacturing site for instance in the automaker of Ford where it is monitored in the supply chain from Democratic Republic of Congo – DRC to Ford automaker company in America.
BThis once-in-a-lifetime breakthrough in decentralised technology has the potential to transform the 4,000-year-old banking industry. Blockchain is revolutionising banking by providing a digitised, secure and tamper-proof platform for transacting value without a centralised authority.
In Uganda, the largest exporter of coffee to Europe Blockchain technology continue to vitalise the agriculture sector, offering transparent means to understand, identify and record the source of produce and its journey as all the information is provided on the barcode which is traceable by scanning using an android phone. Farmers, consumers and food retailers all benefit from the implementation of blockchain: farmers are guaranteed fair payment, consumers know the origin of their coffee as to when was it harvested, region from where it was produced and also retailers can be assured of the legitimacy of their purchase.
Blockchain Technology Transforms Business
The traditional ways of storing company’s data whether small or big is dwindling as most of them, they have realized that traditional storage is prone to loss, manipulation and theft as such, many have embraced Blockchain technology is an innovative way with great benefits as below:
- Better quality of products, this will help meet customer needs.
- Building a product range that will provide opportunities for better sales and more profits.
- Providing more value added products and services that customers are willing to pay for more. This also helps the business to differentiate itself from competitors.
Problem of poor record keeping can be solved permanently by the use of Blockchain technology as it uses secure, transparent and immutable facilities.
sCompanies which would like to venture into Blockchain technology for their daily business should do so upon doing thoroughly research on how the technology is used so that they utilize it to their full benefit.