Move aside, mobile and cloud. There’s a new disruptor about to take the business world by storm: the blockchain.
You only need to consider its ability to securely transfer money through the internet to get a taste of its true potential. Trust is absolutely essential in the digital world, and few technologies provide this level of it. In fact, before blockchain came on the scene, there was not really any trustworthy way to ensure something was the original copy on the internet.
Blockchain’s key advantage is the fact that once information has been recorded on it, it’s simply not possible to then go back and change it. There currently isn’t any more secure way to prove that something happened digitally.
Blockchain can even be likened to another famous business disruptor: double-entry bookkeeping. Like that revolutionary method of ensuring the integrity of financial values in ledgers, blockchain has the ability to transform business, money, government and even society at large.
It is made up of blocks of items that are timestamped and contain not only valid transactions but also the hash of the block that preceded it, forging a permanent link between the two of them. This creates a chain, and every subsequent transaction has to be authenticated across the whole network of computers in the blockchain before becoming part of the next block.
Streamlining Business Processes Securely
It also makes use of “smart contracts”. These are bits of code that are only executed once certain conditions are met in the blockchain. This could, for example, automate payment transfers when a certain task is completed or release a partial payment upon achieving a milestone.
As such, business processes can be streamlined and cybersecurity can be increased while getting rid of the need for trusted intermediaries and centralized authorities.
This blog post was based off an article from CIO. View the original here.