What is Blockchain Technology?

By admin27 February, 2023Write a Comment

Blockchain technology has great potential, is considered the “key” for digital transformation, and opens a new trend for many fields in the future. So what is blockchain technology? What are the salient features of blockchain? And how to apply it?

What is Blockchain Technology?

Blockchain technology allows transparent and secure sharing of information based on a highly complex encryption system. Data will be stored in blocks, linked together in a chain, and expanded over time. Each block will contain information about transaction data associated with the previous block, so it is impossible to interfere with information change.
One thing that makes blockchain different from other technologies is that the information is not centralized in one server, nor can anyone control it, all information will be backed up on many different servers. The design of this network helps to resist data change and manage under a decentralized network. Even if one part of the blockchain system collapses, the other nodes will continue to store and keep the network functioning properly.

Blockchain is a combination of 3 types of technologies:

  1. Cryptography: Blockchain has used public key and hash function to ensure transparency, integrity, and privacy.
  2. Peer-to-peer network: Each node in the network is considered a client and also a server to store a copy of the application.
  3. Game theory: The nodes participating in the system must follow the consensus protocol (PoS, PoW, …) and are driven by economic motivation.

Outstanding Features of Blockchain Technology

Blockchain chains cannot be forged and destroyed: Only when the Internet machine globally disappears will the blockchain be destroyed.

Immutable: Data cannot be repaired if a transaction has already occurred.
Security: The information and data about blockchain chains are distributed and safe.
Transparency: AI will track the blockchain’s path from one address to another and record that entire history.
Smart contract: This is a form of digital agreement embedded in if-this-then-that (IFTTT) code that allows them to automatically execute when certain conditions are met without intervention, by third parties.

Blockchain Technology and Applications

Communication and telecommunications: Blockchain will help media service providers optimize processes, and enhance network security and identity management in their business models.

Source: Springer
  • Manufacturing: Blockchain technology provides solutions to help track the production process, manage inventory, trace product origins through stages, track the supply of production materials, record shipping information pandemic,…
  • Healthcare: Blockchain is used to manage assets and store patient health information, manage the supply chain of drugs, and medical equipment (origin, expiry date, …) automate medical examination and treatment transactions, etc.
  • Education: Blockchain technology helps to store information about the learning process, practical experience, education level, discipline, etc. to avoid the situation of candidates cheating in the process of applying for scholarships and promotions. Blockchain also helps implement the school’s training rules, handle violations, and improve work processes.
  • Finance & Banking: The ability of blockchain to create smart contracts solves transaction risks, eliminates centralization of power, and allows transactions even without a verifier. Users will save costs, increase transaction speed and limit risks in the payment process.
  • E-commerce: Blockchain technology will solve problems related to product origin and transportation through smart contracts, facilitating multinational businesses to easily sign.
  • Agriculture: Blockchain is applied in agriculture to help store transaction information, and increase the transparency of information in the process of transporting products from production facilities to processing facilities, distributors, etc. This helps in effective traceability, improving consumer confidence.

In addition, blockchain technology is also applied in many other fields such as transportation and logistics, the retail industry, tourism, insurance, energy, construction, etc.

The Future of Blockchain Technology

The greatest success of blockchain technology is the creation of “smart contracts”, the transactions agreed in the contract will be confirmed without going through an intermediary. All transactions are safe and transparent, hard to fake and if any, will leave a trace.

Blockchain technology has opened up a new trend in fields such as finance and banking, insurance, accounting and auditing, healthcare, gaming, etc. The thirst for blockchain human resources is hotter than ever.

In the age of technology, customers’ needs for security, connectivity, and convenience are increasing day by day. Moreover, embracing new technology trends will create a distinct advantage for brands to rise above competitors. Currently, many large companies and corporations have embarked on building blockchain such as Facebook, Apple, Alibaba, Ford, etc., creating a new wave of technology for the future.

Conclusion

In short, the birth of blockchain technology has become a bright spot in the science of 4.0 of the 21st century. This is the right time for companies/enterprises to exploit and take advantage of this new technology promptly. optimal and most effective. I hope this article has helped you better understand blockchain technology, and I wish you a good direction in the future.

BKPlus Software is a Vietnamese website design, software development, and IT outsourcing company. Our team specializes in providing high-quality ReactJS, VueJS, Python, Golang, e-commerce, Node, Flutter, and mobile app development services. Contact us to discuss how we can help leverage your technology for business growth.

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