BLOCKCHAIN: WHAT IS IT AND HOW DOES IT IMPACT BUSINESS MODELS?

Blockchain technology is a revolution in business models, economics, finance and business. Market strategies will be influenced by this technological innovation. Before that happens, society must break social, organizational barriers, and align the private sector with the government. 

What is blockchain?

The blockchain art or chain of blocks appeared in 2009 along with the bitcoin virtual currency. It is, explained in a simple way, a register of digital transactions based on a gigantic database that can be consulted by anyone, shared by everyone and where each transaction is registered and insured, so it is impossible to delete such data.

The Economist magazine defines it as a distributed database that keeps a list of records, or blocks, that is continuously growing. One cannot change the information contained within a block, since each block has a timestamp and contains a link to a previous block.

This chain of blocks has as a mandatory requirement a very important data, there must be several users (nodes) whose function is to verify the authenticity of each transaction; the use of these filters are those that guarantee that it is practically impossible to commit fraud, since it is not a single person that confirms the exchange, since later, when registered in the global database, this movement will pass to each new user.

How does blockchain impact?

This technology allows to realize unimaginable processes in a record time. It has motivated the products or services offered to evolve, giving greater value to consumers in their new acquisitions, not necessarily by some physical attribute, but by the infinite added possibilities, such as comfort, freedom and in a very relevant way, when talking about Blockchain security.

There is talk that it is a decentralized network, but what does this really mean? It means that it does not depend on any Government, Central Bank or financial entity. There are no intermediaries and the processes that are carried out through it are faster, more efficient and safer. And this is one of the main reasons for its emerging emergence.

Currently to carry out financial transactions there must be intermediaries, either the bank or a mobile app. This does not always generate confidence or security.

The arrival of the digital age forced companies to analyze and, in due course, to change the way they do business. Thus the blockchain arises: a system with which people who are not known can make transactions on the Internet without intermediaries and with full confidence that transactions are safe, and, to this day, that is the main perceived value around Blockchain, security, cybersecurity.

But, and here lies another of the great values, this new technology, not only allows financial transactions, but can be used for any security , such as stocks, commodities, diamonds, music, art or even scientific discoveries; all of which can be registered and stored safely.

Why is Blockchain important?

The importance of blockchain lies in the revolution it supposes for business models, economy, finance and companies.  However, before that happens, society must break social, organizational barriers, and align the private sector with the government.

Blockchain technology will change many of the functional areas we know today. As a consequence, market strategies will be influenced by this technological innovation.

\And it will be like that, because of its enormous influence on consumer behavior. That is to say, a new lifestyle that companies must identify and collect in their marketing plans will be created (already being created). Blockchain will mean a change in the forms of payment, in the way of relating to the environment, of communicating with the public administration.

The way Blockchain works allows all participants to know the movements and changes that have been made in the document, as well as its author. By being based on mathematical operations, blockchain is, until now, one of the safest methods available to create, modify, share and store information, so it could be applied to any field that needs to perform any of these actions, especially if they have multiple users participating.

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