From 1965 to the present day, the Internet and technologies have evolved in leaps and bounds. In 2011, a system was launched to give transaction data and the status of cryptocurrencies, blockchain. Blockchain’s service serves, among other things, to provide resources for developers and researchers, and to inform us about cryptocurrencies. Jose Duarte, an entrepreneur and eCommerce expert from Costa Rica, offers insight into how blockchain is changing the commerce industry.
Blockchain is an ordered string of blocks of information linked to each other that stores multiple transactions between users. Each time a new block is created it is distributed across the network so that each user has an updated copy of that blockchain. In this way, the new blocks of data are accepted by the nodes of the famous network by consensus. This new technology emerges as an auxiliary technology to the Bitcoin cryptocurrency.
There are five ways in which this system will change the way of doing business, thanks to the potential that this technology has. A percentage of companies have already started using Blockchain in new business models. The financial sector is confident that it will eventually become the world’s leading financial system. Explains Duarte, “Banks already use this interesting technology to streamline various transactions such as payments, transfers and remittances. It is used to lower the costs associated with these processes. Likewise, stock markets like Nasdaq also use it.”
Blockchain applications are not limited only to the financial system. These applications are used in various business areas and this technology is also being used in them. Blockchain makes it possible to carry out various financial transactions between two people in a reliable, secure way and without intermediaries. In addition, it guarantees the immutability of the data stored in it, being transparent.
You have the security of managing personal identities to avoid manipulation by any stranger. Each user can create their own digital identity, which can be safe and reliable, safely avoiding fraud. Blockchain offers that the devices are connected in a decentralized network so that they do not depend on servers controlled by single entities.
Being independent, it allows the distribution of the data storage, avoiding being centralized in the cloud since it is self-employed and does not depend on Google, Drive or Dropbox. By working in a P2P network, the information is safe from external hacker attacks or technical problems.
The blockchain stores financial transactions and any type of information in a secure and immutable way, generating an incorruptibly distributed registry. This one stands out among traditional databases. The application can be used in different sectors, giving complete security to confidential information.
In the European Union, with the entry of the strict General Data Protection Regulation, all companies are updating their privacy policy. And of course, this information refers you to the emails of all the users with whom you have interacted. Thanks to the blockchain, these problems can be solved. Adds Duarte, “Smart contracts will allow the user to own their data. We can give our information only to whoever we want. Modify any possibilities that exist. This is already possible and this is an area where there is a lot of travel. It allows us to maintain a strong critical spirit and be more aware of the complexity that comes with it.”
The agility of the blockchain will be for the benefit of all. It will generate more new businesses than it will destroy. In the long run, we will see that it will be good because even the digital currency generates an alternative and flexibility to create a new business. Blockchain will undoubtedly be the revolution in business models, economy, finance and companies. Therefore, society must break down social barriers in its organization by aligning the government with the private sector. The future is catching up with us by leaps and bounds.