It is certainly not the first, neither the last time, that the blockchain technology will attract our attention, and for a good reason: it is expected to revolutionize the way we interact with each other. How come?
NB: This is an article from Catala Consulting
The blockchain technology function is similar to one of the databases, as it can be programmed to store and track electronically any value on a computer system. Called Distributed Ledger Technology (DLT), this technology allows, as opposed to the classic ledger, to deal with a large amount of data at once by duplicating and distributing them across an entire network of computer systems.
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One example of how this technology can be used today is Google Doc. The platform allows all party to have access to the same document, to visualize and modify it simultaneously. Like the blockchain technology, Google Doc creates trust in the data by focusing on decentralization and equally empowering each party.
How Does Blockchain Work?
As its name implies, a blockchain consists of a chain of multitude blocks storing transaction information. The blocks are linked together in a chronological way which eases the tracking system. Any change to particular information of a block would be translated through the creation of a new block to the chain, gathering all the necessary information to link it to its previous block. All participants of the ledger receive a record of that transaction with a unique cryptographic signature called an ‘hash’.
However, a block is added to the chain only after the ‘proof of work’. By using the consensus algorithm, the different computers of the network agree on the conformity of the block for it to be validated. Thus, all participants can have access in real-time to the stored information and can be reassured of the legitimacy of the data as the entire networks confirmed its validity.
Why Is It So Special?
Today the blockchain technology found applications in both financial and non-financial areas to safeguard online transaction of digital assets. According to a survey realized in 2019 by Deloitte over 1,386 senior executives in a dozen countries, 53% affirms that blockchain will be critical for their organizations in the upcoming years. The survey reveals as well that more sectors are expanding their blockchain activities such as Technology Media Telecommunication, Life Sciences & Health Care and Farming and supply chain (Deloitte, 2020). But why?
