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Blockchain: a guide with everything you need to know!

Blockchain , the basis for the emergence of cryptocurrencies , is a distributed database , with several interconnected computers where transactions are validated in a blockchain structure using high-level encryption .

All this context makes transactions reliable, immutable and traceable.

It works as a shared ledger that contains all encrypted records of transactions that can be physical or digital assets, account balances, inventories, supply chains, fundraising and countless other processes.

Blockchain advances to change our relationships with production, consumption, data security, contracts and process control. Tokenization is a great example of blockchain’s potential to revolutionize business.

Can it revolutionize the administration of your company? Can you change your relationship with buying organic food or buying a car safely?

BLOCKBR prepared this article about blockchain , to help you design the countless opportunities it provides for our consumption habits and business!

KEY CONCEPTS TO UNDERSTAND BLOCKCHAIN

Let’s talk about some essential concepts to understand the blockchain and see that it is much simpler (or less complex) than it seems.

DISTRIBUTED DATABASE

In the distributed database of a blockchain , information does not stay on a central server, it is replicated equally in content between network points ( peers ) defined by the company – computers that will validate transactions.

Currently, companies work with a centralized database on a server, where user requests are sent and data updates are made.

However, what to do when the server goes down or is attacked by cyber criminals?

In the blockchain structure , all points have the same content about the movement of a certain routine – ATM withdrawals, for example. If one of the points goes offline or is deactivated, the others will continue the validation work.

BLOCK CHAIN

Taking the example of a bank withdrawal, all information – withdrawal terminal, account data, time, amount, account balance before and after the withdrawal – must be validated by the entire network ( peers ) and entered into an encrypted block of data. data ( block ).

Each electronically approved block receives a unique digital signature – the hash – and will be connected to the hash of the previous and successor blocks, generating a data chain ( chain ).

Information is immutable and protected. Any attempt to tamper with a block’s data will be immediately rejected, as all nodes have healthy versions of the block.

SMART CONTRACTS

Smart contracts are an extremely important concept that permeates the entire blockchain operation to create consensus rules – parameters on which the network will or will not approve a transaction.

For example, if a bank wants to limit ATM withdrawals to 100 reais a day or the policy for granting credit to microenterprises. You can use smart contracts for all business rules and processes, including:

  • Mechanisms for recurring payments or receipts, reducing human effort and errors;
  • Future commodity purchases;
  • Financial lending rules;
  • Execution of contracts in collection offices.

The attempt to create transactions that circumvent the rules comes up against smart contracts , which permanently govern the conditions of a certain routine.

WHAT ARE BLOCKCHAIN BENEFITS FOR BUSINESSES?

The agility, accuracy and high level of security of cryptocurrency blockchainsbitcoin , ether and others – have brought this technology to the center of attention of markets and companies.

There is a vast field to explore in business with the use of blockchain and benefit from the differentials it provides.

RELIABILITY AND TRANSPARENCY

In a company’s blockchain , a payment slip from a supplier must be validated by all points in the network ( peers ).

After validation, the transaction is recorded in a data block and becomes permanent and immutable – the employee must generate a new operation that represents the payment’s counterpart but never its exclusion.

No point on the network (workstation computers, in this case) has the authority to delete or change data from a transaction – and even if it did, it will conflict with the healthy data that the other points have and will be blocked.

QUAIS OS BENEFÍCIOS DA BLOCKCHAIN PARA OS NEGÓCIOS

 

SAFETY OF OPERATIONS

Undoubtedly this is the first benefit that companies seek in times of cyberattacks and uncertainties about really effective data management and security models.

High-level encryption and the creation of hashs (unique digital keys) to name the data blocks and chain them together are among the differentials that guarantee the total security of the blockchain .

There are no records of cyberattacks on the networks since their creation in the much-targeted movements and digital currencies and in the tokenization of assets , an increasingly common operation in companies to capitalize on projects .

PROCESS OPTIMIZATION

One of the great challenges of today’s companies is to optimize processes and gain competitiveness. The possibilities of gaining efficiency and agility in companies are endless with the use of blockchain technology .

We can name a few:

  • Create a private blockchain with vendors to create smart contracts , streamline payments and track shipments of goods;
  • Manage all activities of a service chain in real time, evaluating deviant results in logistics center operations;
  • Define blockchain connections with the internet of things , smart contracts with parameters and performance indicators monitored by the network. A good example is the use of data generated by sensors in the control of refrigeration of goods.

As we can see, the block network has the potential to add quality to the most varied routines of companies.

These benefits are decisive for companies and people to raise funds with more security and a greater return on investment.

HOW DOES BLOCKCHAIN FAVOR TOKENIZATION?

The link between tokenization and blockchain is total, as it is the benefits of the block network that support the growing success of asset token generation .

The main objective when generating digital assets is to raise funds by companies and people to finance projects. These are high-value goods and safety is a key factor in the process.

High-level cryptography is used in the creation of real estate tokens , works of art, gold, financial products tokens and agribusiness contracts.

In addition, the blockchain and the smart contract with the tokenization rules are the basis for the blockchain to efficiently manage until the delivery of the tokens to investors and the capital raised to the asset owner.

Tokenization with blockchain technology is the future of businesses that need agility, security and the best investment result!

BLOCKBR Digital Assets is a fintech that combines technological innovation and digital knowledge to transform physical assets into digital ones, in the asset tokenization process.

The offer of tokenized physical and financial assets, both current and new, is democratic and decentralized, which makes investing safer, simpler and more efficient.

We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.

Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?

Fill out our form and we will contact you.

BLOCKBR : digital assets driving results and dreams!

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