Blockchain could be the buzz word of 2018. It’s mainly thrown around within the stock market and investors and associated with Bitcoin and other cryptocurrencies. However, the technology itself isn’t brand new and its potential goes beyond cryptocurrency. Blockchain technology can help track supply chains, overhaul back office systems, electronically initiate and enforce contracts, and so much more. The potential for blockchain is incredible and can do so much more besides hide transaction data.
In short, blockchain is a continuously growing list of blocks (records), which are linked and secured using cryptography. Its original purpose was to be a digital timestamp for documents so that they could not be altered. Now, it’s used to keep transactions secret and protect consumers.
If you’re not entirely sure on how blockchain works, here’s a great video that simplifies it:
Many companies from various industries have already implemented blockchain into their business practices. For example, Walmart uses the technology to manage supply-chain data for dozens of food products so they can easily trace where it came from if there’s a recall. And airline companies are using it to stop conflicting flight information from appearing on their websites and at the airport gates & monitors. Over 40 top financial institutions (and counting) are experimenting with faster transactions, digital tracking of asset ownership, and speed up transactions with low fraud risk.
So with blockchain becoming more widespread, does this mean a more secure digital world? It might. Currently, corporate spending on blockchain software is expected to reach $2.1 billion this year and the trend is moving up. In a time where cyber crime is a real threat and initiatives in cyber security are constantly changing, blockchain software may be the answer for not just corporations, but for ecommerce and local businesses.