Blockchain technology is in the zeitgeist, but few people know how to explain it to someone else. They might think that it’s something to do with Bitcoin, to which they would be right, but it’s more broad than that. Today, we want to explore what the blockchain is and some of the ways businesses are using it.

How Does Blockchain Work?

A blockchain is essentially a shared digital ledger where transactions are recorded and stored securely, transparently, and unchangeably.

Blockchain technology is decentralized by design, so it can be distributed across a network of systems. All transactions, or blocks (also called nodes), are added to a chain, which creates a permanent record that cannot be changed. As you can imagine, this makes blockchain technology reliable, secure, and resistant to tampering.

In many ways, it’s the most advanced form of a shared document or spreadsheet.

Instead of just a handful of people editing the document, though, it’s everyone involved. They all have their own copy, and if someone tries to change it, everyone else can see in real time. It’s impossible to change information without broadcasting that change to everyone else involved.

All of this makes it so that blockchain technology eliminates intermediaries to handle transactions.

Potential Uses for Blockchain

Making educated guesses about the future is one of the most fun parts of our job. We’re looking at the following uses for blockchain in the future:

Supply Chain and Tracking

Since blockchain provides transparent and traceable records at every step, it makes sense that it can be used for the supply chain. It should also help increase trust, reduce fraud, and hold organizations accountable.

Decentralized Finance

DeFi uses blockchain for certain financial services like lending, borrowing, and trading, all without having to deal with middlemen or banks and the fees associated with them. These fees can sometimes reach or exceed 30 percent. With the blockchain, users can reduce costs while also ensuring security.

Digital Identity Verification

Blockchain can also store and verify digital identities better than centralized databases. It would prevent fraud and improve user data privacy. It could also be used to verify IDs online, mitigate identity theft, and build more secure voting systems.

Intellectual Property and Digital Content Protection

Blockchain also offers clear proof of ownership and authenticity for things made digitally. It can log every sale in a transparent ledger that can be relied on to protect intellectual property. This type of technology can also get in the way of those who might try to use IP without authorization.

Learn more about the future of blockchain by visiting our blog again soon.