What in the world is the blockchain?

Aug. 19, 2019 | by Bradley Cooper

Image via iStock.com

If you have been paying attention to the news cycle these past few months, you may have heard of Facebook's announcement of its cryptocurrency called Libra. The announcement shook both the crypto world and Congress as it called for the social media giant to put a hold on development until it had time to look at it.

Big retailers are also jumping into the world of blockchain and cryptocurrency. In fact, Walmart recently filed a patent for blockchain powered drones.

But with all this news about blockchain, many people are still confused over what exactly it is and how it's relevant to them. Everyone from retailers to digital signage vendors to restaurants are trying to get a handle on blockchain. While blockchain is a complicated topic, I believe it is possible to drill it down to a few core principles.

The basics

The first blockchain was created in 2009 when Satoshi Nakamoto crafted bitcoin, a virtual currency which stores all of its transactions on an immutable ledger(that is a blockchain). A blockchain is essentially a database that stores individual transactions or data on blocks.

These blocks contain information such as the date, time and amount of a recent transaction. They also feature a unique code known as a "hash" so you can always distinguish that block from every other block.

What makes a blockchain immutable is that it is not typically controlled by one central source. There is no one computer that controls the entire blockchain, rather multiple computers control it. These computers are linked together in a peer-to-peer network. If someone tried to change a block, the network could easily self-correct it. A hacker would have to target the entire network to actually change something, which is a far more difficult task than simply hacking into a single computer.

What does that mean for me?

You might be saying, "Well that all sounds great, but how will that actually impact me?" A blockchain can actually provide a number of solutions for many parts of your business such as:

• It can offer an identity management tool to ensure people have immutable ownership of their digital signage content.
• It can provide a supply management tool to track digital signage supplies from the factory to the store.
• It can deliver smart contracts for international money transfers.
• It can power loyalty programs to offer cryptocurrency tokens.
• It can deliver more secure DOOH trading platforms through immutable transactions.

These are just a few of the ways that blockchain can impact your business and startups are continuously finding new ways to utilize blockchain technology, such as tracking allergens in food products or crafting decentralized models of governing businesses.

Although blockchain is still in its infancy, it is picking up steam rapidly, so it is a great idea to keep a close eye on it. You can help give yourself a leg up by subscribing to Blockchain Tech News, which covers the entire crypto industry.