The databases used in the company typically focus information at one point of access (and vulnerability). In the case of Blockchain technology, however, the total database consists of the set of single encrypted data and stored anonymously at the level of the individual elements (nodes) of a network, all of which are concatenated.
Each new record is stored in such a way that it includes a portion of the information that relies on all previously stored data. The correlation between records makes it virtually impossible to tamper with them without this being immediately highlighted on all the others in the database.
The ability to rely on a form of distributed trust allows parties involved in a process – such as distributing a product – or in a contract – as a transaction – to use a system that automatically ensures the legitimacy and fairness of the operation of services/activities without having to rely on a super parts authority that makes it a guarantor.
What are the major sectors involved in the Blockchain technology?
“Blockchain can be used as a tracing and identity verification system, property, transaction, or digitized event of any type. You can tell us, for example, whether an event happened when and with what outcome, and it can also confirm that the subjects involved in the event had permission to act. With Blockchain, you can therefore efficiently manage any public and private registry.
The areas of application are diverse and include e-government, document retention, notary services, health data management, supply chains, and supply chains. But Blockchain applications can also significantly complement the Internet of Things and M2M (machine-to-machine) interactions.
What are the most immediate benefits?
At the organizational level, Blockchain technology allows for the whole or part of the governance of many public and private services. The benefits are remarkable and include greater efficiency, automation and simplification of large-scale workflows, reduced management time and cost, greater data integrity protection, and more fair and transparent involvement of the various stakeholder’s involved system.
There are different applications and benefits for each industry, but in general, the ability of cryptographic protocols to make data resistant to changes or arbitrary exploitation by third parties is very interesting.
What are the organizational implications?
The profound and systemic change of digital services through Blockchain is a major technical and regulatory challenge that needs to be dealt with gradually and takes a long time. You must consider the needs of all participants in the system and proceed to progressive adjustments, possibly at low risk. Today, markets are experiencing a stage of great fervor. However, this does not mean that application paths are always valid or consistent.
The blockchain is not an end in itself and cannot be applied indiscriminately. Rather it is a means to have something else, it is a driver to gain benefits that would otherwise be foreclosed. It is necessary to always consider practical usage contexts in technical, economic and social terms, and to identify with great lucidity and good sense the real benefits of any applications.”
What are the long-term benefits, though?
A widespread diffusion of decentralized architectures would allow complete re-engineering of all processes of data creation, management, and storage, both public and private. The bureaucracy, the need for infrastructure and the workload of the public administration, for example, would be drastically simplified and lightened, with considerable time and money savings.
Even in the corporate context many of the current centralized and verticalized organizational models could radically change. Algorithmic governance would also allow companies that do not have fiduciary relationships among themselves, or who are even competitors, sharing or exchanging data with mutual benefit, always maintaining confidentiality and privacy, and thus creating new business models that are based on cooperation.
7 Principals of Blockchain Technology
A successful system design for the corporate network necessarily needs to align well with the blockchain tenets that includes ownership, trust, trade, and transactionality in case of a multi-party system. In other cases, the business network may never realize the goal of blockchain technology is a sustainable form. Here are the seven principals to be kept in mind:
• The network participant should have their business control
• The network needs to be extensible so that the participants enjoy flexibility of leaving as well as joining it
• The networks need to be protected and permissions to protect itself from competitive data and facilitating the peer to peer transactions.
• It should provide with an open and free access and global collaboration via collective innovation
• It should be scalable for encrypted data and transaction data processing
• It must accommodate certain enterprise security while addressing the new challenges of security within a shared business network
• The network should co-exist with the current system of transaction systems and records