We’re not all great with IT; some people have no idea what goes on inside their MacBook Air, they sure know how to use it but are totally in the dark as to how it all works. In this short article, we attempt to offer an analogy to help non-techies grasp the concept of blockchain technology.
Trading circle
Let’s imagine 1,000 traders, all sitting in a large circle and they want to set up a system that can record transactions, one that is secure and after much deliberation, they decide that no one trader (or group) should have control. They opt to use a huge ledger that sits in the centre of the circle and one person sits and every time a sale is made, an entry is made into the ledger. If you would like to learn how blockchain can benefit your business, check out Labrys, Australia’s leading blockchain and web3 developer.
Transparency
So, these 1,000 traders can all see the ledger in the middle of the trading arena and no trade can be made unless they each raise their right hand to signify agreement. So, this is what they did and it worked very well; a decentralised open ledger with 100% transparency.
Public/private networks
A public blockchain allows anyone to join the circle and they can trade at will, as long as they follow the rules; a private network is restricted to specific traders. A good example of a public network is Bitcoin; simply download the wallet software, buy some coin and then you can trade. Private networks are used in commerce and usually operate behind a firewall (layer of cyber-security).
Data is recorded chronologically
The network only records a transaction once, which removes the risk of duplication error; data blocks are interlinked, every block of data is connected to the one on each side, which prevents hacking. The only way to change the data is add another data block to the chain and that only happens when all stakeholders agree. Click here to find out how AI is transforming gaming.
Customised solutions
Businesses that wish to migrate their business data to a blockchain network would approach a leading blockchain developer; the first stage would be a needs assessment when the development team take stock of your company and what it does.
There are 3 main processes, which are as follows:
- Proof of Concept – The POC is to validate your concept and show the value before committing resources to the project.
- Minimal Viable Product – The MVP measures market demand and gathers feedback on your project. This showcases your Value Proposition and is a low-cost way to get your product online.
- The build – Once the project goes live, the developers fix bugs and minor issues.
All blockchain networks are fully scalable, so your system can grow with your business; talk to a leading blockchain developer today and set the ball rolling. The developer can show you the potential that blockchain offers and it is 100% secure.
