Cryptocurrency has massive potential in today’s market, but what’s more interesting than crypto is the foundation that it’s been established with Blockchain. Blockchain, much like cryptocurrency is a simple concept on paper, but we’re just now beginning to understand what amazing things we can do with it.
What Is Blockchain?
An ingenious invention from someone only known under the pseudonym Satoshi Nakamoto, blockchain has evolved from a humble beginning to what most people call the “new internet.” In short, blockchain is a time-stamped series of recorded data that’s stored in multiple computers as opposed to a single entity.
The word ‘blockchain’ was a result of people discovering that the data came in blocks. But then those blocks became secured and surrounded by each other through cryptographic principles, similar to how a chain would link to other links.
Bitcoin, Blockchain Technology
So how does cryptocurrency play into blockchain? Well, blockchain in this instance is treated as a ledger for cryptocurrencies. Whether it’s an established coin like Bitcoin or Litecoin, or brand new coin, each coin is firmly established through a blockchain.
The blockchain serves as a master ledger, recording every transaction since the day it was created. Even the blockchain itself is used as a variant to determine the value of the coin. How that’s determined is by the overall length of the blockchain or limit of how many transactions that ledger can take. The ledger can expand over time, but by how much and how many it can handle is something to consider.
Business Application Of Blockchain
And while blockchain is commonly known for its creation of cryptocurrency, some businesses have looked past that and turned to focus on the blockchain itself. This technology is quite malleable and relevant to many businesses. In fact, many big businesses are looking into how blockchain can play a relevant role in their business:
Fedex is using the technology to help track high-value cargo and plan to incorporate it in all types of shipping.
IBM is creating a system that’ll allow organizations to create their own distributed ledger and smart contracts systems through blockchain.
Walmart, along with nine other food providers, is teaming up with IBM to provide tracking food on a global scale through their supply chains via blockchain technology.
The list goes on, but there are many practical applications of blockchain with businesses. From tracking, to even making a coin and having it be involved in a marketing campaign. The potential is vast.