Is Blockchain a Universal Technology?

Introduction

Blockchain is moving further away from some of its shocking components and is increasingly acquiring the features of a really working tool in a variety of areas of human activity. For many companies, blockchain has become a unique challenge, created new directions of business thinking, and even began to slowly but surely integrate into the public sphere. However, this technology remains quite a lot of “blind spots”. Maybe this is because one part of the users sees the blockchain only as a cryptocurrency, while the other, on the contrary, tries to decompose the blockchain literally into atoms, trying to understand every small detail of this technology. Both the first and second groups are right and wrong at the same time, since blockchain, at its core, is not just a technology but a new infrastructure sphere. This means that blockchain has both advantages and disadvantages inherent in infrastructure. Not every company that works on blockchain projects, finds the knowledge and resources to successfully solve all infrastructure issues. However, in such situations there should be no reason for disappointment, since the market leaders in the examination and support of blockchain projects https://dysnix.com/ will not leave users alone with their problems.

Blockchain vs traditional database

Many people, hearing about mathematical algorithm in which, after each addition of any amount of data (in the blockchain, this amount is called a block), an information string of a strictly defined length is formed. The hash function is unique for each block, and it is this function that guarantees the immutability of the data entered into the blockchain database. There is one more feature of the hash function – from a mathematical string formed from the results of the data, it is impossible to perform the reverse operation and read the data that was protected by this string. The size of the data itself, from which each block is formed, is set by the developers of the initial parameters of a particular blockchain network.

There is one more feature of a blockchain database that makes it significantly different from a traditional data warehouse. This feature is the basis of the entire blockchain concept – users must trust such a database. And trust in the information of a particular blockchain network will be ensured only when all relevant network participants have all this information. Let`s imagine that any participant decides to commit fraudulent actions and change or delete data already formed in the form of a block with its own unique hash function. The result will be a mathematical discrepancy between the new fraudulent hash function and the one that is already held by the rest of the network participants. Consequently, a conflict situation will arise, which will trigger the process of analyzing and finding the source of false information and the dubious transaction will not be accepted.

Blockchain and business

Knowing these benefits of blockchain, we can imagine how this technology can be applied practically. The first thing that comes to mind is the use of blockchain in banking processes. State, legal, and notary registers also easily cooperate with this technology. However, many are concerned with the question: is the use of blockchain justified in business? A situation arose when, based on the paradigm of cryptocurrencies that operate on the blockchain, the impression was created that this technology is universally applicable to absolutely all areas of economic activity. There are many examples where the capitalization of companies that have declared that their processes work on the blockchain has increased many times over. However, practice has shown that most often blockchain can be useful for business in cases where a company involves many independent players in its activities who need to deploy database of this company. In other words, blockchain is a rather specific technology which is unlikely to be needed by all areas of business.