Beyond Bitcoin: The Function of Blockchain Technology

Since its origins back in 1991, the blockchain has had one core purpose: to securely store data. The methods behind it are exclusive to it as well. Let’s explore the concept of the blockchain a little further to gain a better appreciation of what it has enabled.

We’ll begin by going over how the blockchain functions.

Understanding How the Blockchain Operates

The big draw of the blockchain is its immutability—how it’s practically impossible to alter any recorded information without some record of that change taking place. This is due to how the blockchain is constructed. All the blockchain really is, is an open ledger system that numerous parties all have access to. Every transaction that is recorded in this system is turned into a block with the details of that transaction recorded there—crucially, one that each member of the blockchain authenticates.

It works like this: a user requests a transaction, which is then sent to the peer-to-peer network of computers that all validate the transaction status. This transaction is then merged with others to form a block of data and is permanently added to the blockchain as it is completed.

This is why, in theory, the blockchain is so secure. It isn’t a matter of hacking one computer… it may very well be a matter of hacking dozens, all at once.

Most People Today Know of the Blockchain in the Form of Cryptocurrencies and NFTs

However, there are many other—and if we’re being honest, generally more practical—applications that the blockchain can or could have as time passes. For instance:

• Encrypted health information could be more securely shared between healthcare providers without risking its privacy and with a complete record of any changes or updates made to it.
• By greatly reducing transaction costs and making these transactions more transparent, financial services could be significantly improved through the use of blockchain.
• Voting could be made more accessible and trustworthy by incorporating a blockchain code into mobile voting applications.
• Food distribution systems could use the blockchain to more accurately track food from its point of origin to its destination, allowing contaminants and other health issues to be caught.

What Else Do You Predict Blockchain Will Allow Us to Do?

Honestly, the immutability of the blockchain allows it to be applied to potentially a vast variety of contexts and use cases, with more potential ones added all the time. The sky's the limit in terms of what might be possible for the blockchain… time will only tell.

If you’re interested in finding out more about what today’s technology can potentially do for your business and its success, reach out to the IT professionals at Accucom! Call us at (02) 8825-5555 today.