Studies show that only 1 in 10 people know how cryptocurrencies work. That means that there’s a good chance that you don’t even understand why cryptocurrency would be the first thing brought up in an article about blockchain. But to understand the uses of blockchain technology, it’s important to understand cryptocurrency.
If you’ve found yourself asking — why is this?You’ve come to the right place. This article will explain to you how blockchain works, and how you can take advantage of private blockchain for your business.
What Is Blockchain?
Blockchain is a form of security developed by Satoshi Nakamoto in 2009, concurrent with his release of the first cryptocurrency, bitcoin. Bitcoin, in essence, runs on blockchain.
The modus Operandi of bitcoin is that it’s a completely peer-to-peer currency, that doesn’t need any government regulation. However, it needs some form of regulation otherwise it would be easy to enact fraudulent transactions.
To make sure that no fraudulent transactions take place, every single bitcoin-based interactionis verified by groups of people, known as bitcoin miners. Bitcoin miners work to solve a complex cryptographic helix (or number) to ensure that the transaction wasn’t fraudulent. They’re able to do this because every single bitcoin has a complex serial number.
When the transaction, or “block”, is verified, it’s placed into a series of transactions, known as the “chain”. So at the end of the day, blockchain is a way to make sure every single step of a process is secure.
What Is Private Blockchain?
Many people quickly realized that blockchain technology could be used for far more than just bitcoin.
Say, for instance, you’re a company that produces milk. One day, one of your customers has an adverse reaction to your product. You link this to several other recent cases of people having adverse reactions to your milk.
Something is wrong with the product. However, you know, as a business owner, that not every carton of milk comes from the same place. They’re all from different farms, different trucks, different refrigeration facilities, etc.
In the past, you would have to pull the entire line of your products to save yourself from a PR nightmare. Now, however, with blockchain, you can target the exact location the issue came from. Simply look at the serial number of the problem cartons, trace them back to where they came from, and pull only the cartons of milk that came from there.
Convinced? Invest in a private blockchain service.
Understand the Uses of Blockchain Technology
While blockchain was developed for use in bitcoin technology, people quickly realize that it can be used to solve a plethora of problems that we face in the contemporary world. Now that you understand the uses of blockchain technology, you can use it to your advantage and get ahead of your competition.
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