Technologies in business networks linked to the blockchain

What is blockchain?

Blockchain – this is used, a ledger is used, simplifying transactions and transactions taking into account the assets in the business network. Active can be material, for example, finance, jewelry, securities, or intangible, intellectual property can be attributed to it, for example.

Anything that has any value can be tracked and sold using the blockchain. This technology reduces risks and costs for all parties involved.

Why is blockchain important?

Business is always inseparable and dependent on data. Recovery speed and data accuracy are very important. Blockchain is suitable for providing such information. The blockchain network allows you to track orders, payments, accounts and more. All sharing options for a single exit.

Advantage of blockchain

It lies in the fact that the network built using this technology is decentralized, and therefore changes our understanding of trust. It is not possible to change this data because it can change the data. Blockchain is a reliable exchange of data in the digital world. Until now, people had to always trust the authorities, institutions or firms that vouched for this trust with their reputation. But thanks to blockchain, trust becomes part of the system itself.

Business value of blockchain

Blockchain remains one of the hottest topics in financial services and stock markets, and there is every reason to expect its speed to grow. Several large financial institutions have formed strong teams to explore the possibilities of the technology, and some market participants have joined in consortia to develop standards for its use.

The use of blockchain technology is expected to expand significantly in the next few years. This revolutionary technology is considered innovative and disruptive as blockchain will reshape business processes, increasing efficiency, reliability and security.

  • Blockchain technology provides business benefits for companies.
  • Establishing trust between parties allows interaction by exchanging reliable data with each other.
  • Eliminate data silos by integrating data into a single distributed ledger system used on a network that can be accessed by parties with permissions.
  • High level of security data Eliminate the need for intermediary services.
  • Creation of real-time records of hacking.
  • Opportunity for participants of the authenticity and integrity of the products sold. 
  • The ability to monitor and control the movement of goods and services in the supply chain.

Efficiency and quality.

The use of blockchain technologies significantly reduces the time and costs for the execution of individual business organizations. For example, you can save time spent on processing documents at all stages of the delivery chain, as well as quickly and honestly get information about the location of the goods at any convenient time.

This system excludes the use of counterfeit goods or poor-quality products hitting store shelves, so that customer data will always be protected from various fakes and falsifications.

Speed ​​and simplicity.

The work of smart contracts can significantly improve the flexibility of business processes by ensuring the implementation of all the terms of the contract. In addition, smart contracts allow the exchange of various assets without external intermediaries. Procedures such as confirmation are no longer difficult. , because the system is securely confidential information to all network participants.

During several studies, it became known that more and more companies and organizations are interested in this technology. For example, according to the 2018 Blockchain Survey on Deloitte, 70% of executives surveyed consider themselves to be good experts or even experts in this technology. There are many examples where this technology has already successfully demonstrated itself, for example, in medicine, electronic voting, data and, of course, in the financial sector.

Blockchain can have different configurations depending on the application, from public open source networks to private networks, where explicit regulation of read and write access rights is required.

1. Transactions

Two parties exchange data, it can be money, contracts, medical records, various documents, data  the buyer or any other digitally described asset.

2. Confirmation

Nodes, that is, computers and servers in the network, collect transactions into blocks and carry out validation – a procedure for checking the absence of controversial transactions in the past, according to the accepted rules in the network.

3. Structure

Each block is identified by a hash, a 256-bit number that is generated using the algorithm. The block contains: a header, a link to the previous hash block and a group of transactions. A series of linked hashes create a secure chain.

4. Verification

Blocks must be checked for data immutability before being added to this chain. The rules by which verification is carried out are called consensus. There are a large number of consensus mechanisms, the application of each of which depends on the needs of the project.

5. Blockchain mining

Miners try to “solve” the block by fitting one variable to the equation until the solution satisfies the purpose of the network. Such an algorithm is called “Proof of Work” because the correct answers cannot be falsified due to the peculiarity of the applied calculations, which consist in the asymmetry of the time spent – they are significant for finding a solution and are very small for verification.

6. Built-in protection

If an attacker tries to send a modified block to the chain, the hash function of that block and all subsequent blocks in the chain will change. Other nodes will detect these changes and divert the block from the main chain, thereby preventing corruption.

7. Chain

When a block is verified, the miners who solve the equation are rewarded and the block is distributed across the network and added to the main chain.


Of course, you think that the transition to a new blockchain technology will not be easy at first. This is true, but just think about what opportunities your business might lose if you don’t take full advantage of this innovative system and give it a try! Perhaps it’s time to start understanding this right now, and the faster and harder you start, the faster you will get and see a very long-awaited result.

Kyle Enciso is a financial analyst who analyzes the financial market without error. He works for ICOholder company. Kyle believes that the best work is done quickly and accurately.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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