Blockchain Explained

You may have heard of cryptocurrency and more specifically Bitcoin, but what do you really know about the technology that powers them? 

Blockchain was originally devised for digital currencies,  but advances by a range of innovators have enabled the application of this technology across a broader range of industries and functions, ranging from IoT to controlling cars. 

You do not necessarily need to know how the blockchain works in order to use it. Nevertheless, having a basic understanding of this new technology clarifies just why it is considered one of the biggest revolutions of the 21st century.


Back to Blockchain Basics

Central to blockchain technology is the idea of a series of digital ledgers to record and validate transactions to a network of computers called nodes.  Once a transaction is verified, it is then combined with other transactions to create a ‘block’ of data which is then added to an existing blockchain. The key features of blockchain include:

  • Robustness – by storing blocks of information that are identical, permanent and unalterable across networks, blockchain cannot be controlled by a single entity and moreover, has no single point of failure.  
  • Transparency – within each ‘block’ or group of transactions lies data that is embedded in the network and is made public or transparent as a result.  Moreover, this block cannot be corrupted in any way and altering any unit of information within the blockchain would require using a huge amount of computing power to override the network.
  • Decentralization – this essentially means relates to the fact that there is a global network of computers using the blockchain technology to jointly manage the database. This means there is no central authority as the network operates on a user to user (or peer to peer) basis.  


Uses of blockchain

At present, the financial industry offers one of the strongest cases for blockchain technology utilisation, however, as blockchain affords secure value and authenticity for users, more and more stakeholders are exploring how best the technology can be used to their own benefit.

The OpenBazaar app for example, uses the blockchain to create a peer to peer Ebay, enabling transactions with other vendors on the same platform without incurring any standard transaction costs. By making results fully transparent and publically available, blockchain technology could bring greater certainty to elections, as illustrated by the Boardroom App – a platform based around more transparent and verifiable corporate governance. 

Moreover, the use of smart contracts that enable the effective exchange of data between electrical devices, would increase efficiency and cost control when it comes to managing the Internet of Things (IoT).


Where We Fit In 

Industry 4.0 will create substantial efficiencies for companies all over the world. However, a lack of device security and standardized data exchange makes implementation difficult. The Augmate Connect Infrastructure Platform, plus IOTA’s blockchain-less tangle and micropayment approach, unifies the tools and processes for the fourth industrial revolution. This is accomplished through secure transactions that aggregate and create accessible (yet tamper-proof) records.

Click the link here to read more about our unique platform, and how it can help your company engage with the fourth industrial revolution.