What Blockchain Is and Where You Can Use It

Blockchain is a technology that is commonly used by startups and enterprises across different fields. You have probably heard about it but do you know what it really is? And how you can benefit from blockchain? Let’s find out.

What is a blockchain? 

A blockchain is a method of organizing a program in a chain of blocks designed according to certain rules. Each cell of the block carries information about the previous cell. This technology is based on the principle of decentralization, that is, the ledger is not located in one place, but in all computers of the system participants that form the network. Thus, the blocks cannot be replaced or hacked, as this would require hacking all computers.

The advantages of this technology are simplicity, speed, security, transparency. For example, if a transaction was made on the blockchain network, information about it will remain in a million computers, that is, it will never be lost or falsified.

What technologies to use to implement a blockchain?

The security and stable work of the blockchain largely depends on the technologies that were used for its implementation. Functional programming languages such as Haskell are best suited for this type of work. They are based on applied mathematics concepts that go in hand with advanced mathematics behind the blockchain algorithms.

Where blockchain is used in business

Due to the amazing properties of blockchain, it is used in various industries: 

International payments

Blockchain is ideal for finance and, in particular, for international payments. The process of international transfers, which usually takes a lot of time, money and the parties involved, thanks to the blockchain, can be simplified. It will significantly reduce transaction time, costs, and also remove the need for a complex information structure. 

Copyright protection

Copyright infringement is considered one of the biggest problems in creative fields such as art, music, film, and literature. The blockchain application allows authors to confirm and protect copyright and intellectual property rights. Moreover, the technology will provide secure storage and prompt updating of information about any objects.

Smart contracts

Smart contracts exist in the form of an algorithm that allows you to conclude self-executing contracts on the blockchain. This type of contract is ideal for use in commercial transactions, as they guarantee the transfer of funds or some other action as soon as all parties have fulfilled all the obligations specified in the contract. Smart contracts do not require intermediaries and are executed automatically, making them an especially convenient tool for startups.

Internet of things

The Internet of Things (IoT) is a class of devices that can exchange any kind of data with each other, thereby creating a network of interactions. The use of blockchain can guarantee the safety and integrity of data in the IoT, as well as provide a reliable security system.

Conclusion

Blockchain is a useful technology that any business can implement. However, it is important to hire professionals that have experience in functional programming and blockchain development to create a trustful ecosystem.