The concept of Blockchain is relatively recent and, when it appeared on the market, it was associated with cryptocurrencies, namely Bitcoin, as it was developed as an integral part of it. Nowadays, however, it extends far beyond that and is beginning to move away from this association.

What is Blockchain?

Blockchain is a network technology that allows transactional data to be recorded and shared in a chain between different entities. Information is stored in blocks, allowing it to be distributed and decentralised and preventing any single entity from owning it. In other words, anyone can use the Blockchain and help run it; however, any type of change has to go through a process of verification and certification by other users and, once accepted and considered trustworthy, another block containing the new information is added to the chain.

Security is a priority of this technology, and every action carried out within it, such as tracking information, must be done in a transparent and tamper-proof way, according to the parameters of common sharing.

Bitcoin: the beginning of blockchain

This technology was introduced in 2008, when the concept of bitcoin entered the market through the report "Bitcoin: A Peer-to-Peer Electronic Cash System", written and published by the supposed creator of this digital currency. In this specific case, Blockchain was at the start of its development and its objectives were defined on the basis of Bitcoin and online transactions. Today, many more uses are recognised and, because of them, it is considered one of the technology trends that will revolutionise the 21st century.

Few companies know about this technology and far fewer make use of it. Its uses are revolutionary in the digital environment and can be a competitive advantage for many organisations.

Advantages of Blockchain for SMEs

1. Trust and Transparency

Blockchain makes it possible to reliably bring together all the information needed for a transaction or relating to an asset, and any user can access it. It is possible to see every process in the supply chain of any product or service, from its production to its distribution and logistics. In this way, and with no secrets, trust between companies, users and customers becomes inevitable.

2. Tracking

As mentioned, it is possible to access information on every process within the supply chain, making it possible to trace any good, product or service back to its origin. When a transaction is made, the information within the Blockchain is updated, forming a transparent and freely accessible transaction history. Being able to know, for example, where the food we eat comes from is a great advantage of this technology, allowing users to detect fraud and inform themselves according to their interests. Tracking is very important, as it allows companies to build a relationship of trust with the customer.

3. Distribution and decentralisation (open source)

In the vast majority of cases, information about a given asset is centralised, belonging to a single entity and kept confidential by it. The fact that Blockchain is open source with no defined core is a great advantage for all companies, regardless of their size. All the information recorded on it is accessible to everyone and any user can make use of it, particularly in a professional capacity. This chain-based distribution has revolutionised the way data is stored and spread on the web.

4. Security

Although it is a record that can be viewed by everyone, it is virtually "un-hackable", as it is protected by cryptography, one of the most secure forms of encryption. Changing, deleting or editing data has to go through a series of verification and authenticity certification processes, which means it is almost impossible for hackers to break into the system to edit or delete records. Even if they do, the Blockchain will still hold that information in its history in previous blocks, along with the new changes. This is the goal every company wants to achieve, maximum security and a permanent record, because even in the event of a cyber attack, all the information will remain available.

5. Low Cost

For many companies, particularly small and medium-sized ones, costs are a priority. With Blockchain it is possible to reduce some costs because, thanks to its transparency and efficient tracking, access to information is much faster and more effective, enabling greater productivity and better use of time.

How can you ensure your SME's security?

Concern about cyber attacks has been growing, as digital threats are increasingly numerous. Security is one of the priorities for action in the digital world, and it is because of this that Blockchain stands out in the market.

Ensuring the protection of a database is essential for any company. At Openlimits, we base our promise on your complete security, in the digital world, in communication systems and in data backup. Explore our offer and contact us to make sure your company is protected.

Written by:
Openlimits

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