The world is changing faster than ever, but only some things move at a fast pace, while others are relatively slow and prone to record-keeping friction. Although technological advances have made it possible to store large amounts of information electronically, the old methods are still around because they are suitable for most people. But what if there is a better way? This is where the blockchain comes into play..
What is the blockchain?
A chain of blocks, or blockchain, is an interlocking set of data. This set of data in some cases, such as Bitcoin, is decentralized, and serves to store all the network transactions that are carried out. The blockchain stores information such as “blocks“, which are linked together with cryptographic security. In Bitcoin this means that the data in its blockchain is public and verifiable: it cannot be altered without great computing power, because the information is not stored in a single place.
Blockchain in the real world
Most people will know blockchain as a data support system for cryptocurrencies, since Bitcoin is the most well-known cryptocurrency. But there are many other industries where blockchain plays an important role.
This is the most prominent blockchain app. Banks are interested in the tool because it provides a secure way to transfer money, without the need for an intermediary.
The use of blockchain in healthcare has been a hot topic. This technology is considered the next big thing in the industry as it aims to revolutionize patient data security. The blockchain can store and track essential information, allergies, and medications, especially regarding sensitive data like DNA samples.
Companies that make goods can use blockchain to track the materials used to create their products. In this way, it is possible monitor the movement of goodsensuring that they are delivered only to the intended destination.
Blockchain can also be used to make a aircraft health and maintenance tracking by monitoring the aircraft parts supply chain, ensuring that all the pieces are where they should be and that each one is authentic and safe to use. It also records data about parts so engineers can use it for any purpose.
What are the advantages of a decentralized blockchain?
A survey by the World Economic Forum showed that executives list speed as the top benefit, followed by cost savings, regulatory compliance, and risk reduction. Speed eliminates the inefficiencies of a centralized database.
- Decentralization and security
Decentralization is an important advantage because it does not depend on central authorities. This means that there is no single place where data is stored. The information is distributed through a network of servers, all linked but decentralized. So there are no single points of failure. If one server goes down, there will still be many others with the same data. Decentralization is a crucial advantage because it provides security and data privacy.
Even if your blockchain database is secure and has low latency, if the network it’s linked to is unstable, it won’t be worth much. This is one of the most pressing problems facing businesses today.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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