For several years now, global businesses have been actively implementing blockchain in their operations, and national governments are testing the capabilities and preparing a legislative framework. In fact, blockchain technology is fundamentally different from all currently available systems and, when applied globally, can make financial, trade, economic and managerial processes simple and transparent.
Blockchain was originally the basis for the digital cryptocurrency Bitcoin. In fact, the system of distributed registries has the potential to revolutionize the world order. Blockchain, in addition to finance, can be used in business, the organizational structure of companies and states, manufacturing and management.
At the same time, in order to use blockchain in business, for example, it is necessary not just to adapt business processes to the new technology, but to change them completely. But let's go over everything in order.
Blockchain is an ordered and constantly updated database that is distributed to all participants in the system, rather than being stored on a single server. Blockchain literally translates to "blockchain". Its creator is Nakamoto Satoshi.
Each block in the blockchain contains a time stamp and a link to the previous block. In simple terms, a blockchain is a digital filing cabinet where data about an action is entered. For Bitcoin, these are transactions, transfers and deposits.
Data encryption allows each blockchain to be modified only by the ID key of the user who owns the blockchain. At the same time, the system is synchronized after each transaction.
The user registers and creates a bitcoin wallet - a new chain of blocks appears.
The system generates a private key created using a cryptographic algorithm to manage the assets and change a particular chain by the user.
Each transaction, be it a deposit to a wallet, exchange, transfer of funds, or sale of bitcoins, is a new block in the chain, which is fixed in time and has a link to the previous block.
Due to the decentralized storage system, blocks cannot be lost, erased or altered by anyone other than the owner of the blockchain key.
If we talk about blockchain in general, the possibilities of this system are limitless and promise a significant simplification of many processes. The absence of bureaucracy, transparency of financial transactions at all levels, including government, and the eradication of bribery are just a small part of blockchain's promise for the future.
Now more and more companies and startups are turning to a system of ordered data. Blockchain's versatility, transparency, and security puts its invention on par with the advent of the Internet. Blockchain will undoubtedly become ubiquitous in the future and will enter all areas of human activity.