Blockchain is the technology behind Bitcoin and other cryptocurrencies. Technically a Blockchain is a public distributed database meaning that a copy of this database is held by each participant in the network. This technology makes possible implementing decentralized systems and applications like cryptocurrencies. Blockchain employs cryptography as security measures to guarantee immutability of the database. Another important part is a protocol which needs to be followed by its participants in order to have consensus in such distributed systems. Systems based on Blockchain are almost impossible to break since there is no central server or authority which can be attacked. In a centralized network, if the attacker gets access to the central node, it will affect all its participants. This type of attack is known as a single point of failure. Unlike fiat currencies, cryptocurrencies are not regulated by a central authority. The first industry hit by Blockchain was the financial system but today there are more and more areas disrupted by this technology.

Today businesses also can take advantage of Blockchain and the applications built on top of it. Such an example is the Ethereum platform which allows its participants to create Smart Contracts. These are applications written by developers and run on the public platform in order to ensure consensus between involved parties. Smart contracts help businesses exchange value in a transparent way avoiding conflicts and middleman.

Blockchain will disrupt the industries where the middleman is involved in the process of interaction between two entities. Such industries could be banking, payments and money transfers, politics and voting systems, insurance, healthcare, crowdfunding and others. Social media and the way how people communicate on the web are other sectors where blockchain will shine. There will be social networks where communication between its participants will happen peer to peer without the need to store the information on a corporate central server.

Our consultant experts can help your company build business layers on top of Blockchain technology.