Here are some common questions about Blockchain.
Why is everyone so interested in Blockchain?
According to a forecast of the World Economic Forum, by 2025 there will be activities that will generate more than 10% of world GDP which will use blockchain technology.
With Blockchain, the world’s most fundamental business interactions can be reimagined and it opens the door to invent new styles of digital interactions. This technology has the potential to vastly reduce the cost and complexity of operating businesses.
What is Blockchain?
Blockchain is a new technology that is considered revolutionary.
It is a digital database (called ledger) of shared information between different parts that ensures both transparency and security.
To make it easier, Blockchain is essentially a coding technique that allows for verification of any transaction between two or more entities.
What can you record on the Blockchain?
The Blockchain can be programmed to record virtually every transaction of value (financial, physical, digital).
Blockchain guarantees the validity of a transaction by recording it not only on a main register but also on a connected distributed system of registers, all of which are connected through a secure validation mechanism.
As a kind of self-auditing ecosystem of a digital value, the network reconciles every transaction that happens.
How does it work practically?
Every product is born with a cryptographic identity. Each time a step of the supply chain is confirmed, a code is generated, stored remotely, verified by the network and becomes part of the ID of the product.
This ID can be held on a QR code, serial number, RFID or NFC tag for customer consultation. Blockchain does not require specific devices but can be used with all the previous supports.
Smart contracts automate the business processes (from the raw materials buying to the final distribution). API enables the different parts to leverage blockchain synchronization capabilities for their own IT platforms and supports ERP integration and flexible data modeling.
Is Blockchain secure?
The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt.
By storing blocks of information that are identical across its network, the blockchain cannot:
– Be controlled by any single entity.
– Has no single point of failure.