Blockchain, the digital ledger technology, offers an immutable record of a transaction based on a distributed consensus algorithm. The technology gained notoriety through the use of bitcoin, the digital commodity.
Admittedly, the initial hype and confusion surrounding blockchain has been dramatic. Nonetheless, the current state of the technology is about employing the tool effectively, improving its interoperability, and pairing it with other advancing capabilities such as artificial intelligence (AI), machine learning, and the Internet of Things (IOT).
Experts indicate that over time the focus is going to be more on managing blockchains and using it like one more essential back office tool to lower costs.
Blockchain offers expanding capabilities for secure transactions as it becomes more user friendly and ready for prime time as it creates “an immutable, unchangeable, permanently verifiable record of a transaction.”
The process involves endorsing parties participating in a transaction that is recorded digitally as a block or group of records. The block and data are then mathematically linked to other blocks.
The digital ledger ensures that users can only transact with the assets or information to which they have been assigned within the blockchain, and this compartmentalizes or limits their interaction.
Users do not have to be computer scientists to implement a blockchain application. Its use should be a well thought out decision based on whether or not the new technology can be applied to solve problems. It is also recommended that blockchain is used in parallel to existing systems until metrics prove the value of blockchain.
Summarized from afcea.org