When the Internet was first introduced it created a division of two sets of poeple who took the technology in two different ways. There were a group of people who were ready to make the switch at that time got very much benefited but there were another group of people who just saw the internet as a medium for social media and buying things.
Similarly, when Blockchain was introduced first it got enough criticism (from 2012-2016). This invention also caused a division between the entrepreneurs. Once again the entrepreneurs were divided into two groups. One believing and trusting that this technology can offer endless security and the other one considered the technology as a fad.
But it is a responsibility for bloggers like me to give my entrepreneur readers a piece of information or article about Blockchain that they should know. Therefore in this blog, I will discuss three points that every entrepreneur must know about blockchain. But just like every time let me first give you an idea about the concept of Blockchain. Relax and get some useful knowledge.
Concept of Blockchain.
Blockchain is basically a database just like the traditional ones. But there is a point which makes the blockchain database hugely differ from the traditional database. Blockchain is a list of records that are linked with each by the security of cryptography.
Normally a company uses a database system to store billions and billions of backup data, but the database is located in only 2-3 regions of the world. And, they spend billions of money to secure those data.
But the Blockchain database works very differently. With a blockchain, data can be stored in several computers anywhere across the world for a much lower cost. The database files included in the blockchain are highly encrypted.
In a blockchain, files are broken into pieces and are stored separately as to avoid complete loss of a file if malware attacks the system.
The files are all interlinked with each other. Therefore, if a hacker tries to open one part of the file, then other parts also will be needing authorization. So, the targeted part won’t even open.
Blockchain can store the whole database in many copies in different systems thus making it impossible to crack and hack.
3 Things an Entrepreneur should know about Block-chain.
Entrepreneurs should understand the fact that blockchain is not just only Cryptocurrency. Yes, it is true that blockchain’s gift “cryptocurrency” to the world has changed the concept of secured financial transactions. But coming back to the point let’s discuss the 3 topics that I have mentioned.
1. Raising Funds on Blockchain.
Blockchain offers a funding source ( new mechanism of funding) to the entrepreneurs via ICO (Initial Coin Offerings). The base part of the first building block of an organization is finance or capital. As finance is the key to the source.
But once the initial work is done, comes the part of the research and product development.But thanks to the blockchain as you can use this technology in both the mentioned scenarios on the base of Proof of Concept.
In case the entrepreneur belongs to a rural area he might face difficulties in finding investors for his organization. Therefore they can use this technique to raise funds via blockchain. This is a great tool for entrepreneurs who cannot find investors easily.
2. Smooth Infrastructure.
Industries generally depend on third parties when it comes to security and protection and that’s what makes them so prone to malware attacks. Industries which deals with healthcare, education, insurance get restricted in certain offerings as to protect the data.
Trusting absolutely anonymous parties with your company’s private and confidential data will may not be a good decision. And the third parties also try to extract profit as they manipulate the markets by various pricing schemes.
This whole concept can be avoided by using the second generation of blockchain led by Ethereum. The point which makes Ethereum form Bitcoin is that Ethereum gives the developers the freedom to build apps and services. You just have to write the app which you are building on the top of the Ethereum stack by writing SmartConstarcts bt using languages like Solidity and Serpent.
3. Power of Fragmentation:
Blockchain posses a power which can over-power many industries. The power is to integrate decentralization or fragmentation. In real-time, it can decentralize the information it holds to the whole community and is not confined to one.
This strategy of decentralization has benefited organizations in many ways This technology has helped to increase transparency and increased operational speed.
India is also adapting this concept of blockchain technology is many areas like, in voting, land records directory, and in time of issuing birth certificates.
Points to look on Enterprise Blockchain.
Many industries are slowly accepting and adapting the blockchain technology as Enterprise Blockchain. There are several features which can be mentioned about Enterprise Blockchain.
1. Superhuman Performance:
Do you know that the traditional transaction process like a public chain doesn’t even approach 100 transactions per second? But the transaction rates are increasing and industries like telecom and credit processors need a huge rate of transactions per second (around 10,000-100,000 tps)
To reach those level of transactions, blockchain can be used but with a more advanced architectural approach like,
- Efficient Division of different tasks.
- Use of asynchronous flow.
- Faster harmony of protocols.
- Use of parallelization.
2. High resistance:
Blockchain Enterprise must keep a high resistance power. They must be able to come back from potential failures cases. The technology should keep a high availability and must avoid issues which may result in major damage.
To tackle these kinds of issue a blockchain technology should assume that failures happen all the time and they must keep themselves running under any kind of situations.
3. Privacy and Security.
Privacy and Security is a huge entity of Enterprise Block-chain technology. This technology is also called permission blockchain. Here all the members are known entities and they are carefully audited before the are allowed to enter the ecosystem.
Coinsdesk in an article stated that “Digital signatures applied to all network messages enable all nodes and clients to verify the sender and validate message integrity. This is coupled with transport security to authenticate the endpoints of the communication and encrypt the message traffic.
Further, automatically applying encryption for the stored data completes the best practices for encrypting data in transit and at rest. When this foundation is used transparently and pervasively for all secure communications and stored ledger data, it’s a big step forward in maintaining the integrity and security of the blockchain network, preventing most hacking attacks.”
Conclusion:
This topic almost covers every point that an entrepreneur should know about Blockchain. From this blog, you can also observe how Enterprise Blockchain is an important attribute. There are a lot of misconceptions and questions out there regarding blockchain technology.
I think that this blog will help you in the long run if you are going to adapt blockchain for your organization.