What is Blockchain and what is it for?
Blockchain or blockchain is a technology that allows to record information in a secure and transparent manner. It works as a digital ledger in which each record is linked to the previous one, forming a continuous and unbreakable chain when new records are added.
Everyone can see what transactions there have been (change of holder, in which contract...) but no one can edit it. This is because this information is available on different servers in a decentralized manner, a network of nodes or computers in charge of controlling the security, transparency and authority through its consensus protocols.. If a new record is to be added, it must be approved by the entire computer network.
You may be interested in → Business Innovation: Spatial Computing Applications in Extended Reality.
Blockchain technology is primarily known for its role in supporting cryptocurrencies, but its applications go far beyond that.
- In the business world, Blockchain can be used to trace the origin and handling of products in the supply chainThe authenticity and quality of the goods are guaranteed.
- At the digital leisure and entertainmentBlockchain technology provides an additional level of security in the ticket sales and traceability to concerts and shows. Stopping the sale of counterfeit tickets and offering greater transparency and control by the organization in the resale.
- In the legal fieldcan provide the means to automated contracts that execute themselves when certain conditions are met, reducing the need for intermediaries and making processes more efficient.
How Blockchain technology works
An important point when it comes to understanding the Blockchain technology is to be clear about how it works. Everything is based on the creation of a list of records, the blocks, which are linked together in a secure and chronological way.
Each of these blocks on the chain contains a set of data and agreements that are validated by the participating nodes of the network. Through encrypted algorithms, these nodes agree on the validity of transactions before adding them to the block.
Once this block has been verified and added by the network, the chain is public and is distributed among all users of the node network.ensuring that information is accessible and transparent to all participants.
A distinguishing feature of blockchain is that it each block contains a unique code, called a hash, which links it to the previous block in the chain. This hash is generated based on the information in the previous block, which means that any change in a block would alter its hash and therefore invalidate all subsequent blocks.
Types of Blockchain
There are mainly two types of Blockchain based on the more limited or more public access to be part of the network of blockchain verification nodes. Thus we can speak of Private Blockchain and Public Blockchain.
Public Blockchain
In a public Blockchain, anyone can join and participate in the transaction verification process. This type of Blockchain is completely decentralized and transaction records are visible to all users. Examples of public Blockchains include Bitcoin and Ethereum.
Private Blockchain
A private Blockchain is controlled by a specific entity or group, and access to it is restricted to authorized members only. This allows organizations to have greater control over their data and operations. Private Blockchains are ideal for business situations where privacy and efficiency are crucial. Examples include Hyperledger and R3 Corda.
Blockchain technology applications
Blockchain technology has transcended its initial use in cryptocurrencies to revolutionize various industry sectors. With its ability to ensure security, transparency and efficiency in transactionsThis technology offers a wide range of practical applications.
From the supply chain management at the industrial level up to the implementation in voting systemsin the control of sensitive patient information or in the creation of the new smart contracts to protect copyrights in the music industry.
Next, let's take a look at the possibilities opened up by Blockchain for digitally transform the different sectors.
Entertainment sector
The Blockchain is reshaping the entertainment industry by offering new ways of distribution and monetization of content.
Enables creators of music, movies and video games to protect their works and receive direct compensation for their use through smart contracts that ensure automatic royalty payments.
If you are interested, visit our post Virtual Reality in video games: the future of entertainment.
Health systems
In the healthcare sector, blockchain technology offers solutions for improve the security and privacy of medical records. By storing patient data on a Blockchain, the information is guaranteed to be immutable and transparent between the Private Blockchain participants, the healthcare providers. All, without compromising patient confidentiality.
This technology also facilitates drug traceability from manufacture to distribution, reducing the risk of counterfeiting and improving inventory management in pharmacies and hospitals.
You can learn more about the impact of new technologies in the healthcare sector → Virtual Reality and medicine: applications in the healthcare sector
Industry 4.0
Many stakeholders are involved in the industrial supply chain: suppliers, transporters, distribution stores, consumers... Blockchain technology in the industrial field provides a way of more transparent and secure verification and traceability.
Where each piece and material is registered, keeping track of each transaction and time of delivery. Facilitating the verification of the authenticity and origin of the productsThis reduces the incidence of fraud and counterfeiting.
If you are interested in the impact of technology on the industrial sector, discover What is Industry 4.0 and what are its main characteristics?.
Fashion and luxury
Blockchain technology also has an impact on the fashion and luxury sector. Thanks to its ability to certify authenticityBlockchain technology and digital assets NFTs play a key role in the most exclusive markets of the fashion industry.
The brand guarantees the authenticity and traceability of each garment, increasing the value of the shopping experience and solving two of the main problems in fashion and retail: overproduction and counterfeiting.
The implementation of this technology allows the on-demand production through the sale of NFTs, which minimizes excess inventory, reduces environmental impact and creates great expectation among consumers. Transforming shopping into an experience that transcends the simple purchase of a product.
Digital banking
Undoubtedly, if there is one sector in which cybersecurity plays a key role, it is digital banking. Beyond cryptocurrencies and DeFi decentralized finance, Blockchain technology offers solutions also to traditional banking by enhancing the security, transparency and efficiency of financial transactions.
Thanks to their ability to record transactions in an unalterable and verifiable manner, banks can significantly reduce fraud and improve user confidence.
You may be interested in → Banking and Metaverse: use cases and the future
Metaverse, NFTs and Blockchain Connection
New and surprising technologies are currently emerging that, combined with each other, are transforming the way companies work and communicate. Among them is the connection between the Metaverso, NFTs digital assets and Blockchain technologywhich are revolutionizing interactions and transactions in the virtual world.
The Metaverse offers a new virtual space of connection between the brand and the userswhere the NFTs allow both the verification of purchases in these environments as well as the digital identity of users and their avatars. Assets representing products, goods and services that are registered and protected through Blockchain. Ensuring that each item is unique and non-replicable.
Read more about this topic at Metaverse and NFTs: present and future relevance.
With the integration of these three elements, we have configured a digital ecosystem where interactions and transactions are as secure and reliable as in the physical world.opening up a wide range of economic and creative possibilities for companies.
Developing, for example, new immersive e-commercewhere to explore all the possibilities of brand loyalty, such as in the online store/home from Lekue where you can see their products in an interactive kitchen.
Examples and use cases of Blockchain at Imascono
Now that you know how the blockchain works, you should know that in combination with the Metaverse and NFTs, they are laying the foundation for the future of the Web3of the new concept of socioeconomic ecosystem in the digital world. Today, we are seeing the first use cases of the application of Blockchain technology at the enterprise level:
- One of the most interesting examples of Blockchain is found in the tourism sector by the hand of Exclusiverse. The virtual headquarters of the travelers' club Exclusive Traveler Club where the digital membershipsThe company's website, reservations and member profiles are managed through Blockchain technology.
- Another success story is the virtual museum of elBulliFoundationThe collection of 114 NFTs from the "Culinary Innovation" exhibition at the Metaverse was presented and offered for sale at the chef Ferran Adria.
At Imascono we know that Blockchain technology is shaping and will shape the future of the digital future of companies. Both at the cybersecurity level, as well as in transactions and the sale of products and services. A technology that is compensated by its combination with other technologies such as the Metaverse, the Artificial Intelligence and the Big Data.
Are you looking for incorporate Blockchain technology in your company? ¡Contact with us!
