The blockchain market will grow by 67.3% between now and 2025. This exponential growth is beginning to pique the interest of businesses around the world. But what is blockchain? And which business operations benefit from blockchain? You will get your answers through this tech guide.
In this guide, we’ll dive into how blockchain works and take a broad look at one of the fastest-growing technologies.
Tech Guide for What Is Blockchain?
Blockchain is a data network that securely stores information as a digital ledger. This network deters unauthorized change, making it impossible to hack or manipulate.
The best way to understand blockchain is to imagine it as an actual chain of blocks. Each block along the chain stores digital information, from transactions to personal information.
To differentiate each block’s information safely, the segments produce a code called a “hash.” The hash protects the data in each segment. A single block of data can store data related to many transactions with different hash codes.
To store new data into a blockchain, you must make a verified transaction. Other users must approve the transaction. The transaction receives a unique hash and stores it within a block on the blockchain.
Users run blockchains. Users, or “nodes,” within the blockchain work together to approve transactions before making it onto the chain.
While this is a brief overview of what a blockchain is, there are more details involved. For anyone who wants to dive into the specifics, blockchain webinars provide a more comprehensive overview.
How Is Blockchain Used?
Businesses may benefit from blockchains for scenarios that need strong encryption and sensitivity. There are several use cases for businesses that want to use blockchain. This tech guide will help know more about block chain.
Banks use blockchain to transact money transfers and payments internationally. Blockchain makes the process more efficient by blocking third-parties.
Traditional third-party blockers usually make the process longer. Because of this, the process is also more cost-effective.
Blockchain is a useful tool for accounting because it prevents financial record forgery. Since it’s impossible to hack blockchain records, accounting data is safer when stored in a blockchain.
Taxes and other processes that rely on accurate identity management benefit from blockchain. Blockchain securely stores vital information such as date of birth, age, and more.
A blockchain stores this information without revealing the actual identity of the person. This makes it easy to store personal information without fear of privacy violations and identity fraud.
Supply Chain Management
Supply chain management is all about accurate record-keeping. Blockchain makes supply chain management more reliable and transparent. With its method of storing, verifying, and distributing data, businesses have access to accurate supply chain data.
The Next Steps
We hope this guide answered your “what is blockchain” question and more. Blockchain is useful for businesses of all types. If you own a business and you’re looking to keep your financial records safe, blockchain is worth looking into.
As blockchain continues to grow, the technology will become a must-have.
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