Blockchain technology is way bigger than finance. It can be implemented in any multiple-step transaction where traceability and visibility are needed. A supply chain is an excellent case where Blockchain can be taken advantage of to manage and sign contracts and audit product provenance. Also, it could be taken advantage of for votation platforms, titles, and deed management amidst other multiple uses. As the digital and physical worlds come together, the practical applications of Blockchain will increase.
Blockchain is widely known to be an open-source technology that presents another option to the traditional intermediary to transfer the cryptocurrency called Bitcoin. The intermediary was substituted by the collective verification of the ecosystem, providing a massive degree of security, traceability, and speed.
What Is Blockchain?
Blockchain is a database that serves as storage for encrypted data blocks then chains them together to create a chronological single-source of truth for the data.
Blockchain is occasionally called Distributed Ledger Technology (DLT). Blockchain ensures that any digital asset can’t be altered and transparent by using cryptographic hashing and decentralization.
How to succeed with Blockchain?
Fast block confirmation times
People are usually amazed whenever they discover that completing a transaction on the Bitcoin network isn’t instant. It takes about 10 minutes to come to a consensus for every batch of transactions. Because it’s a Poisson process, it has a (1%) non-trivial process that may take about 45 minutes to confirm the transaction. This “Throttle” was formerly added for network stability to ensure the nodes had enough time to attain consensus but were likely conservative.
Litecoin (Bitcoin codebase initial alteration) made confirmation faster. Supposing all the participating computers have fast internet connections, there won’t be any reason not to carry out fast confirmation. Still, it should be slow enough to ensure all the nodes are even. Many newer currencies have confirmation times in the order of seconds. Several recent currencies have confirmation times on the order of seconds. BitShares possesses 3-5 second confirmation times, and its main limit being the light speed and network switching speeds.
Blockchain makes your data immutable
Blockchain is the best tool for supporting data immunity through the distributed data registry. The blockchain serves as storage for distributed data. It’s a literal chain, and all transactions are linked to the former and the preceding one. It’s amazing how the data is synchronized, so the nodes have a similar data-testing mechanism that ensures it’s intact.
The changes made by anyone working in the blockchain ecosystem, either reading or feeding the data, are recorded. It helps to maintain consistency, distribution, makes data immutable to theft, hack, and manipulation. Blockchain assures a safe process, but it can’t assure the security of your decentralized applications. Also, the dangers of mistakes made by people and logical errors in the blockchain can cause vulnerabilities that may lead to an attack.
Blockchain for logistics and manufacturing
Blockchain is common amidst several new international research and development collaborations. And one aspect of international collaboration is in logistics.
Blockchain technology can assist in tracking an item in a supply chain. For instance, when verifying the authenticity of products to stop the distribution of fake medicine in a pharmaceutical supply chain or track its movements to ensure essential supplies in a humanitarian emergency get to their destination safely. De Beers is creating a diamond-tracking platform to enhance the traceability and transparency of the supply chain; Walmart also tracks the movement and Pork origins in China.
All computers on the blockchain network must have a complete copy of the ledger database. It enables the network to attain a consensus on the present state of the ledger, which also implies that its vital that the blockchain is small.
Several blockchains are a few GB in size, but Bitcoin has increased to 43GB. But suppose this increase isn’t adequately managed. In that case, the network becomes stressed about maintaining large files that may not fit in memory and reduces the speed at which the network can attain a consensus, hence transaction speed.
Bitcoin developers included an auto-pruning feature to mitigate this issue. Most people believe that computer technology will exceed blockchain storage and transmission demands, but it’s still something you’ll have to consider when building a new blockchain.
Most times, blockchain developers store a significant percentage of the cryptocurrency money supply for themselves before releasing it to the public as a means of compensation for their development work. Generally, this currency pre-mining isn’t favorably regarded by the crypto-currency community, leading to a backlash, stifling adoption.
Darkcoin and Neucoin experienced a public backlash caused by pre-mining. Neucoin used different methods to mitigate the situation, including adding extra transparency and restricting the founders’ ability to sell their pre-mined stake instantly. Darkcoin took the beating in the forums and later rebranded to DASH.
Many other creative measures have been created to make sure there’s a fair initial distribution. “Proof of Burn” implies a recent currency can only be obtained by showing that you damaged another crypto-currency. Since the protocol intensified this, the currency users’ assurance that the developers can’t keep a secret cache of it. The Counterparty cryptocurrency was distributed this way safely.
Auroracoin, an Icelandic alternative to Bitcoin that has entered into obscurity, is released by offering 50% of the money supply equal to the 330,000 Icelandic citizens. Clams is a currency that was launched by giving it freely to anyone who has a Bitcoin address during a particular time. This way, they each attach themselves to the existing mature distribution of Bitcoin.
The exponential and disruptive increase of Blockchain will arise from public and private Blockchains meetings to an ecosystem where customers, suppliers, and firms can work together in a safe, auditable, and virtual way.