New technology often makes for more efficient – and secure – processes. This is certainly the case with blockchain, which is a digital record-keeping technology often associated with cryptocurrency, such as bitcoin. However, blockchain can be used for more than just financial transactions, as illustrated here.
A Common Sense Guide to Blockchain
1. It’s Not as Complex as You Might Think
Because the term can cause confusion, it’s important to break it down into two separate parts. The “block” in blockchain refers to digital data, while the “chain” involves the public databases where this data is stored.
2. A Blockchain Has 3 Separate Components
In general, blocks contain the following information.
- Transactional Information: This includes details like the time and date when the transaction was made, as well as the amount of money exchanged if applicable.
- Participants: Participants include the party sending the information and the party receiving it. Participants are identified via digital signatures as opposed to their actual names.
- Identifying Information: Blocks contain a “hash” to ensure they’re unique from one another. Hashes are unique to every transaction made, whether they involve the same participants or not.
3. Blockchain Has Numerous Applications
The encrypted nature of blockchain makes it ideal in situations that require a high level of privacy, such as when sending a patient’s medical records to another office or clinic. It can also be used within the financial services sector.
For example, a blockchain can be used for more secure asset management or when making a payment globally. Other applications include intellectual property tracking, identifying fraudulent financial practices, and more efficient record-keeping.
Small business owners in Nebraska must stay on the cutting edge of technology to excel. With over a quarter century of experience under their belts, Intellicom provides innovative services and equipment to ensure you remain competitive. They can help you secure the right IT solutions and telecommunications equipment and explain complex subjects like blockchain in a way you can understand. Call (308) 237-0684 to schedule a consultation. Visit them on Facebook for more tips and information.