Blockchain is a distributed database that maintains a continuously growing list of ordered records called blocks. They are, by definition, inherently resistant to data modification: making use of a peer to peer network, Blockchain databases are capable of being autonomously managed.
Blockchain operates by a timestamp, establishing a link to a previous block, making them suitable for records management activities, transaction processing, and proving data provenance, capable of managing social interactions on a large scale and dismissing traditional central authorities. This way, Blockchain allows organizations to achieve large-scale and systematic cooperation in an entirely distributed and decentralized manner.
The implementation of a Blockchain facilitates organizations secure online transactions, because it allows the participants to verify and audit transactions in an inexpensive manner. These transactions are authenticated by mass collaboration, resulting in a strong workflow with marginal uncertainly regarding data security and in a substantially lower-cost solution.
Blockchain is an innovative technology expected to disrupt the cloud computing industry and with the potential to create new foundations for global economic and social systems, bringing significant efficiencies to global supply chains, financial transactions, and a decentralized social networking. This makes Blockchain able to be integrated into multiple areas and services, facilitating businesses where it comes to use new methods of processing digital transactions.
Blockchain was first conceptualized in 2008 by Satoshi Nakamoto, as a core component of Bitcoin, serving as the public ledger for all the transactions. This made Bitcoin the first digital currency to solve the double spending problem, without the need to use a central server, and serving as an inspiration for other applications ever since.
Blockchain makes each transaction digitally signed with the aim of ensuring its authenticity. This way, when a new transaction or an existing transaction fix is received, most of the nodes within a blockchain implementation evaluate and check the history of the individual blockchain. When is form the consensus that the history and signature are valid, then allow the new transaction to be accepted in the registry and a new block will be added to the transaction chain.
Allowing computers to verify and settle transactions eliminates the need for clearing chambers and other clearing agents, providing the exclusion of the middle step inside the organization, helping reducing costs as well as improving the speed at which transactions can be made, verified, defined and recorded.
Blockchain works on tracking how resources move through a supply chain, suppliers and factories, until they reach their final locations.
The Accountant of the Future
Business Process Management (BPM)