In layman’s terms, the Blockchain is a virtual, public ledger that records everything in a secure and transparent manner. Unlike banks that facilitate transactions with traditional currencies, the Blockchain allows the free transfer of cryptocurrency through a decentralized environment. All the data is then held in an interlinked network of computers, owned and run by none other than the users themselves.
To some people, the Blockchain technology is a lot more promising than the cryptocurrency it was designed to support. Sure, the demand for Bitcoin is colossal at this point in time. But since it’s basically backed by nothing but sentiment, it’s reasonable to believe that the Bitcoin bubble may eventually pop, however unlikely that may be. The benefits of Blockchain, however, are more than big enough to sustain its relevance for generations to come.
As transactions are completed directly between the relevant parties with no intermediary and with digitized information, settling the transaction can be quick. Added to this is the ability to operate ‘smart contracts’ which automatically trigger commercial actions based on satisfying the criteria laid out in the contract. This can dramatically streamline processes and in doing so, remove time and cost from transacting.
As each transaction is recorded sequentially and indefinitely, it provides an indelible audit trail for the life of an asset even between parties. This is especially important if source data is essential in verifying an assets authenticity.
Tracking goods forwards in a supply chain can be advantageous when seeking to trace where components are currently residing. Information relating to the component can then relayed to or from the new owner for possible action.
Lack of commercial transparency can sometimes lead to delays in commerce and a breakdown in relations. By providing details of transactions against the commercial construct, further trust can be enlisted within the process and so provide a more stable relationship based on transparency rather than negotiation.
As each transaction is verified within the network using independently verified complex cryptography, the authenticity of the information can be assured. Assured information is one of the fundamental keys to unlocking the benefits of the Internet of Things (IoT), which is a closed loop cyber autonomous process linking assets to actions.
With full traceability throughout the lifecycle of an asset, the asset designers and manufacturers can accommodate through-life asset management into their products to make them more effective. This can allow for information returning from shipping, installation, maintenance and decommissioning.
Get in contact with us to discuss how Blockchain can help your business, or similarly, how we can build your latest innovative Blockchain start-up using our highly experienced Blockchain development team.