The use of blockchain enables brands to track the path of a food product from its origin, through every stop and finally delivery. If a food is found to be contaminated, it may be traced back to its origin through every stop. Not just this, they can see everything else that they can have in contact with, so that the problem can be identified far sooner, possibly to save lives. This is a practical example of blockchains, but many other kinds of blockchain implementation are available.
The potential of Blockchain as a decentralised recordkeeping system is virtually limitless for all its complexity. Blockchain technology can well see applications outside of those described above from greater user privacy, increased safety and lower processing fees to fewer errors. But some disadvantages also exist.
First proposed in 1991, Blockchain settled comfortably in his late twenties. As most of the millennia have, in the last two decades, Blockchain has seen a fair share of public scrutiny, with companies worldwide talking about the capabilities of the technology and where it has been heading over the coming years.
Blockchain is finally naming itself at the age of 27, in no small part because of bitcoin and crypto-currency, with many practical applications for this technology being implemented and explored. Like the motto of every investment in the country, blockchain can improve the accuracy, efficiency, safety and cost of business and government operations with fewer intermediaries.
Five fundamental principles underlie the technology are:
Each blockchain party has access to the entire database and its history. No individual party controls the information or the data. Each party can directly and without an intermediary verify the records of its transaction partners.
Communication occurs directly between peers rather than through a central node. Each node stores and forwards information to all or any other nodes.
Transparency with Pseudonymity:
Every transaction is visible to anyone having access to the system and its associated value. Every node or user has a unique alphanumeric address of 30-plus characters identified in the blockchain. Users can opt for anonymity or provide others with proof of identity. Transactions take place between addresses of the blockchain.
Irreversibility of Records:
After entering a transaction in the database and updating the accounts, the records are unchanged because they are linked to each record of the transaction (that is, the name ‘chain’). Diverse computer algorithms and approaches are used to ensure the database record is permanently ordered, chronologically ordered and accessible on the network to all others.
Blockchain transactions can be linked to calculational logic and essentially programmed due to the digital nature of the ledger. This enables users to set algorithms and rules to activate transactions between nodes automatically.