Innovation explained: Blockchain technology

If you look into the current articles in technology press and media, you can hardly get around the term blockchain. Many people refer to this innovative technology as the future of the Internet. But what exactly is behind the innovation and how can it change our digital life so fundamentally?

 

The blockchain technology makes it possible, simply put, to pass on information in a secure way. However, a change of the data records is excluded. This new type of data transmission prevents subsequent manipulation. Trust in the Internet thus takes on a completely new meaning. If you want to put it that way, Blockchain is a distributed database management system that gives the internet something it has longed for: A feeling of security.

 

How a block chain works

Blockchain is the basis of different cyrpto currencies, such as Bitcoin. Since the blockchain technology is always built on top of each other, i. e. one chain link is attached to the other, the data set cannot be changed at a later date without damaging the stability and integrity of the entire system.

Blockchain Technology - Function
Blockchain Functionality (Source: BlockGeeks. com)

 

With its tamper-proof data management technology it forms a valuable basis for the new method of payment. With Bitcoin, the data chain consists of a series of data blocks that combine various transactions. All transactions carried out are based on these chains and cannot be changed time without damaging the entire transaction system.

 

Future of Blockchain

But block chain technology is still in its infancy. This tamper-proof data management system can be used to control almost all business processes. From communication to customer interaction.

 

“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” – Don & Alex Tapscott, authors of Blockchain Revolution

 

The advantages for the various branches of industry are clear. Since the blockchain is a uniform data system for all recipients, it cannot be controlled or manipulated by a single person. At the same time, it is also less prone to errors, as the entire network is committed to the stability of the blockchain. Thus, there is a kind of transarency and freedom from corruption that is almost unknown from previous processes. With this security, the blockchain system is extremely stable. Expertise in this area is therefore much in demand and will bring with it completely new types of consulting and IT management in the coming years.

 

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