Blockchain, Web3

Blockchain: Key Concepts Every Startup Needs To Know

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Crypto is no new thing in 2023, but not many people know about its alma mater. The technology that gave birth to this groundbreaking currency is blockchain, the facilitator of them all. Not many know that it is not crypto or Supply Chain digitization that has revolutionized the world but the technology of Blockchain. It is a database technology that sets it apart from the traditional structure of Excel, Spreadsheet, etc. It focuses on distributing identical copies of a database across an entire network. 

Blockchain is essentially a combination of two very generic terms that make the system’s basis. “Block” refers to the individual data that form the system, and “Chain” refers to the digital ledger that joins the Block together. Nodes; i.e., the computer functions as this body that updates the new Block (data) on the Chain(digital ledger). 

In this blog, KiwiTech aims to acquaint its readers with the basic terminologies and concepts of Blockchain. 

Decentralization

Since the database can be shared with as many people as are included, no central authority owns the database; everyone and anyone in the system has access to the database and can use it. 

Every computer is a node that transfers and updates the data as it is included in the blockchain system. 

Highly Secure

Blockchain only allows blocks verified and confirmed by a majority of the existing nodes. So not anyone can barge into a blockchain without seeking due verification.

Public V/S Private Blockchain

As the name suggests, public Blockchain provides access to read, write or audit the data on Blockchain. As there are no single computer nodes, it isn’t easy to make any alterations in transactions. 

Contrarily, a private Blockchain is owned by an organization or group. The invitees in this Blockchain are restricted, and it is a more secure way of storing and using databases; since there is a single authority involved. 

Use Cases of Blockchain Technology

Blockchain is as simple as a ledger, just a digital one. It allows everyone to store data in a shared system. Hence, it can not make use of itself just by itself. Blockchain innovation is used in multiple instances to ease the process of a particular industry. Two such uses are mentioned as follows:

Cryptocurrency

Crypto is the ultimate buzzword in the financing world. Despite the risk involved, this form of currency opens a world of digital currency that the system of Blockchain helped with.

Supply Chain Monitoring 

The Supply Chain system is the most time extensive and labor incentive part of any business. Many subsidiaries are involved, and thus the task is prone to multiple frauds. Blockchain innovation solved this problem by providing the ultimate solution of tracking every product to save effort and work and minimize fraud.  

There is no doubt that Blockchain has immense potential for technological advancements though facing multiple challenges. Yet it continues to improve its system and becomes purposeful for more and more problems in the society.

Tapping into the right technology and innovation helps startups grow and quickly escalate from the pre-seed stage to further growth. It promises great potential for the future, and people look to invest in keeping on this groundbreaking technology. We, at KiwiTech believe in the power of combining new technologies with startups to accelerate the growth rate. So if you are looking for something like this, feel free to contact us and get mentored by the very best.


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