Blockchain explained to my grand-ma'

What is blockchain?

Blockchain is a shared ledger that facilitates the process of recording transactions and tracking assets in a business network.

An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding).

How blockchain works?

To work, blockchain follow 7 basic steps

Blockchain basic steps

1. A request for transaction is raised

2. A block corresponding to the transaction is created

3. The block is submitted to all machines (computers, servers,...) participating to the blockchain (also called a "the nodes")

4. The nodes approve (or rejects) the transaction

5. Each node receives a reward for having participated to the transaction handling

6. The new block is added to the existing blocks

7. The transaction is completed

What for?

According to Synopsis (https://www.synopsys.com/glossary/what-is-blockchain.html) , blockchain can be used for

• payment processing and money transfers. Transactions processed over a blockchain could be settled within a matter of seconds and reduce (or eliminate) banking transfer fees.

• monitoring of supply chains. Using blockchain, businesses could pinpoint inefficiencies within their supply chains quickly, as well as locate items in real time and see how products perform from a quality-control perspective as they travel from manufacturers to retailers.

• for digital IDs. Microsoft is experimenting with blockchain technology to help people control their digital identities, while also giving users control over who accesses that data.

• data sharing. Blockchain could act as an intermediary to securely store and move enterprise data among industries.

• copyright and royalties protection. Blockchain could be used to create a decentralized database that ensures artists maintain their music rights and provides transparent and real-time royalty distributions to musicians. Blockchain could also do the same for open source developers.

• Internet of Things network management. Blockchain could become a regulator of IoT networks to “identify devices connected to a wireless network, monitor the activity of those devices, and determine how trustworthy those devices are” and to “automatically assess the trustworthiness of new devices being added to the network, such as cars and smartphones.”

• healthcare. Blockchain could also play an important role in healthcare: “Healthcare payers and providers are using blockchain to manage clinical trials data and electronic medical records while maintaining regulatory compliance.”

Do you want to know the maturity of your company for blockchain?

Go to the collection of maturity models

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