Since it was first developed in 1991, the main purpose of the blockchain is to store data in a secure way. With its unique methods, this can be utilized in a variety of work industries as it enables sharing of information in a quick, accurate, and secure manner. To fully appreciate the idea of this technology, it is important to understand how it works.
The Blockchain Operation
The primary benefit of the blockchain is that saved information cannot be amended without documentation of the change being made. The blockchain is an open ledger that was developed to allow several users to have access to it. Each transaction in this system is recorded resulting in a “block” which includes all the details of the transaction. Most importantly, each member of the blockchain is required to authorize the transaction.
The process begins with a user requesting a transaction. The request is then sent to all the peer-to-peer network of computers and requires authentication of the transaction from all users using known algorithms. Following this, the transaction is merged with other transactions to form a block of data that is unalterable and permanently added once the transaction is completed.
As a result, the blockchain is extremely secure. One wouldn’t have to hack only one computer to retrieve information; but instead, one must hack dozens of computers, all at the same time.
Other Types of Blockchain Technology
Today, many people know about the blockchain as it relates to cryptocurrencies and NFTs. There are many more practical utilizations of the blockchain. Blockchain technology can be used in healthcare settings where health information should be kept private and without risk of security breaches. The blockchain would allow information to be shared more securely between healthcare providers with documentation of any changes or updates that may have been made on a patient’s medical record. Financial institutions can also benefit from this technology. It would result in quick and cheaper settlements while also providing privacy for customers, transparency, and reducing transaction costs. Voting locally, state-wide, and nationwide will benefit from the security of the blockchain as voting can be more accessible and fair, all while producing immediate, verifiable results. Any attempts to alter the the data will be recorded, ultimately regaining voters’ trust. Safety within the food industry can use the blockchain in order to track their food from its origin to its destination allowing the identification of any possible contaminants or other health issues that may have crossed its paths.
As mentioned earlier, the technology cannot be altered without a record of it being changed; therefore, it can be applied across all work industries. From healthcare industries to automotive industries, blockchain technology allows for accurate tracking, cost reduction, and increased transparency.
If you’re interested in finding out more about what today’s technology can potentially do for your company, speak to one of our IT professionals at AE Technology Group! Call us at (516) 536-5006 today.