What is Blockchain?

By now, you’ve probably heard of blockchain technology. Blockchain is quickly becoming a hot topic amongst businesses, think-tanks and investors alike; in fact it seems like everyone is talking about this transformative technology. Blockchain is definitely an emerging new technology sector which has the potential to streamline and enhance many processes for a range of industries. 

But what exactly is blockchain? And where does it come from?

The first, and most well known blockchain project which turned cryptographic and distributed ledger theory into a reality was Bitcoin. Created by the anonymous Satoshi Nakamoto (who many speculate to have been a group of blockchain developers working together) in 2008, Bitcoin was the first cryptocurrency ever made. Blockchain, and particularly Bitcoin, was first designed to prevent issues such as security by being decentralized, prevent double spending, and allow users to transfer funds in a peer to peer manner.

However blockchain has progressed in the decade since Bitcoin was created, and it can now offer secure storage of customer data, streamlined asset management, immutable transaction data and much more. Blockchain ‘platforms’, such as Ethereum, Lisk, Cardano and NEM, allow developers and businesses to build their own blockchain using their platform, implement smart contracts, carry out transactions and more.

Likewise, businesses building on blockchain platforms can create what is known as a decentralised application, or ‘DApp’, which can perform many of the same functions mobile phone app users enjoy today, however the back end code of the application is rooted in the blockchain platforms distributed ledger technology, providing all the benefits of blockchain, with the same user benefits app users enjoy today. Many businesses are starting to realise the potential of blockchain technology and have began building the DApp’s of the future. 

Beyond Digital Currency

Blockchain is often assumed to be the same as it’s partner technology, cryptocurrency, however there are a myriad of uses for blockchain which do not involve cryptocurrencies at all. Below are some features of blockchain technology which make it so attractive to industry:

Distributed Ledgers: Also referred to as a shared ledger, these ledgers are shared and synchronized data, stored on the blockchain and decentralized across many different computers. This means that the data is replicated and spread between multiple computers and institutions, wherever a blockchain ‘node’ is present. The main benefit distributed ledgers offer is security, as no centralized server holds the data, and the prevention of fraud. New transactions on the shared ledger must reach ‘consensus’, meaning multiple nodes must confirm the transaction before it’s approved. This increases security and prevents double spends, and the best part is, these transactions can be on private permissioned ledgers, where only authorised parties can see the transaction. Many banks and financial institutions are already implementing distributed ledgers in their businesses.

Smart Contracts: The BlockScope smart contract development page offers a greater insight into this exciting new technology, but briefly, smart contracts are fully automated contracts on the blockchain. When certain terms are fulfilled, for example a payment is received, the contract executes itself to the benefit of both parties. Participants in the smart contract may update the database, verify changes, and implement new terms, simplifying business deals and saving time.

Reduced Transaction Costs & Greater Speed: Blockchain can facilitate peer-to-peer and business-to-business financial transactions without involving a third party, such as a bank or payment provider like PayPal. This reduces costs in fees to the third party provider. Likewise, blockchain can process transactions which would normally take a long time to process, such as cross border payments, in a relatively short time using the distributed ledger, and doesn’t involve currency conversion fees.

Some or all of these uses could prove highly beneficial to your business model, saving time, money and resources. 

How can BlockScope Blockchain Development Benefit Your Business? 

Blockchain development in Gibraltar and Malta has become widely popular, with many new business startups in the fintech industry relocating to these nations, attracted by a large, growing blockchain community.

Here at BlockScope, not only can we work closely with you to identify which aspects of your business can be enhanced using blockchain; we can also offer full-stack development, from inception to execution, of a blockchain solution that’s right for you.

As blockchain is still such uncharted territory for many companies, BlockScope’s team recognises that embarking on a blockchain project for your company may require significant planning, consultation and time. That’s precisely why we’ve assembled the very best in blockchain developer talent to guide your project, realise your project goals, and implement a blockchain solution tailor-made for your needs. The BlockScope team has some of the world’s leading Ethereum developers with experience of working on a multitude of complex projects, experience they can use to bring your blockchain to life. 

Ready to explore blockchain for your business? Get in touch with BlockScope to discuss your needs, your specifications, and your vision for how blockchain can work for you.