First off, many of you might may have heard the term “blockchain” before but are not 100% familiar with its structuring and functionality. Basically, blockchain is way of making data very secure for specific users involved. The backbone of any blockchain is cryptography which is a way of arranging information that requires a type of key to understand it. According to a recent article by How To Geek, they describe the building process of a blockchain as, “Every time the information is accessed and updated, the change is recorded and verified, then sealed off by encryption, unable to be edited again. The set of changes are then saved and added to the total record. The next time someone makes changes, it starts all over again, preserving the information in a new “block” that’s encrypted and attached to the previous block (hence “blockchain”). This repeating process connects the very first version of the information set with the latest one, so everyone can see all the changes ever made, but can only contribute and edit the latest version.”
Recently, a lot of talk around blockchains are synonymous with Bitcoin, but the capabilities and functionalities of blockchain far outreach cryptocurrencies. Take the AP/AR space for instance, there is a constant flow of money, data and information between industries and organizations. All of that monetary data and information needs to be recorded, secured and accessible, so how do we accomplish that? We can utilize blockchain technology to create a secure ledger of all transactions and exchanges that are only accessible to those allowed access. This prevents data tampering, closes potential fraud access points, and keeps an “open source” flow of the valuable data if you have access.
Now, is this a totally secure system? Do you remember the show “The Weakest Link?” In the world of blockchain, the weakest link is actually you, the user. As the blocks and chains are secure as well as the decentralized data within, the keys necessary to access the blocks and potentially modify them lie with the users and therefore need to be protected. Blockchain technology will continue to evolve and become utilized in a vast array of applications but there are still a lot of variables to the best ways to utilize the technology. To learn more about how NetChain Squared utilizes this technology to provide full automation technology to our clients and partners, fill out the brief form below and we will be happy to reach out to you.