Blockchain is a revolutionary technology which became a basis for cryptocurrency. However, it is not exclusive to the financial field and can be widely applied.
Blockchain is a decentralized database created with cryptographic methods. It allows to store data securely and keep it intact. Blockchain’s special feature is the fact that the system tracks even the slightest data modification. Blockchain data is stored on various devices (servers), and its storage contains so-called block chains. Each block is a separate data record with a timestamp and a cryptographic hash of the previous block.
How Blockchain Works
Data encryption allows users to alter only the part of the block chain they have direct access to. This helps to avoid database control. New technologies make it possible to synchronize all records, which are added to the storage simultaneously for all users.
Blockchain’s complex and reliable concept was offered in 2008 by a man named Satoshi Nakamoto, whose identity is yet to be discovered. Blockchain technology was first used in Bitcoin cryptocurrency. Blockchain allowed Bitcoin to become the first cryptocurrency that avoids any process centralization. Bitcoin doesn’t need central banks or other financial institutions, and its users conduct transactions without any trusted authorities.
Blockchain operation security is provided by a distributed server which connects a network of remote devices. They form a unique database which doesn’t need a unified operation center. The solution can be successfully applied in different fields, e.g. to track events, keep records, work with large data blocks and for authentication purposes.
Blockchain is commonly associated with the Internet of Things. It allows anyone to publish data online and for other users to easily access it, wherever they are. In order to access a distributed ledger, a person needs to own a private key, created using cryptographic algorithms. The key will grant access only to the blocks you own. And by transferring your private key to another person, you will share with them the access to data stored in those blocks.
This algorithm allows to establish a relationship of trust and supports the principle of identity verification. No one is able to alter block chains without owning necessary keys.
What is a Distributed Database
The most basic example of Blockchain storage structure is a giant spreadsheet full of data which has been copied millions of times to various network devices. In addition, the data in this network is updated every minute.
The information stored in a block chain is public. It is constantly being verified using thousands of copies. Such format has a number of significant benefits. Data is not stored in one specific location, it’s public and accessible. There is no centralized storage that could be tampered with or damaged.
In a nutshell, Blockchain’s features are:
- decentralization – there is no hierarchy, each member supports system performance and functions as a separate server;
- transparency – all information is publicly available, and no data modifications ever go unnoticed;
- in theory, no limits – block chains can be expanded exponentially;
- reliability – new data can be added only if all network elements allow it. All operations are filtered, and only thoroughly checked data is recorded.
Ways to Use Blockchain
Although nowadays Blockchain is associated primarily with cryptocurrency, the technology of distributed records can be used in other fields as well.
We offer a number of solutions for the public sector using Blockchain technologies:
- Improved workflow in institutions (inter-office correspondence, citizen applications).
- Military resource management systems that simplify work with each member of the military (skills, characteristics, track record), as well as improve unit localization, displacement planning and order issuing.
- Databases for medical institutions (optimization of patient records which contain discharge information, diagnoses and treatment plans).
- Copyright solutions (authentication of ownership and copyright, transfer of copyright to another party).
- Automated relationship between the citizen and the state in the most corrupted spheres (registering a limited liability company or obtaining a traffic police certificate).
- API for payment systems (money transfer tools, digital signature for accounting records, estimates).
- Other convenient and high-quality solutions.
We will help to implement Blockchain in the public and private sector. Our experts develop programming modules both for new and existing processes.