Understand blockchain

When it comes to blockchain, most people may associate it with the cryptocurrency Bitcoin. Although there is indeed a connection between the two, their concepts are actually not the same. By reading this book, people can understand that the use of blockchain is far more extensive than the application of cryptocurrency.

The Bitcoin network operates on the basis of the principle of permissionless membership, which is anonymous, while the commercial permissioned blockchain network manages the membership of known entities. This book tells readers that blockchain is a new technology, and it is destined to open up new business operations and make people’s daily lives better. Making good use of blockchain can create new growth opportunities, and blockchain enables various organizations or groups to achieve better results.

The reason why blockchain is important is that no company operates in isolation. The effect of the cooperation of multiple agencies is greater than that of any single agency. By using the collective knowledge of a group to formulate business processes, this process can achieve an order of magnitude cost-effectiveness improvement. New processes that were impossible before the advent of the blockchain are now possible. This can bring new opportunities for many companies and create new competitive advantages.

The book mentions that the U.S. Food and Drug Administration (FDA) has adopted new food labeling regulations that require manufacturers to inform the public of the sugar added to food. But how can a company that produces protein bars know exactly whether the ingredients it uses contain sugar? More importantly, how can it prove its innocence once it is required to prove it? If it is a member of a trusted food blockchain, and all raw material suppliers record food information on the blockchain, then the company that produces protein bars can easily show that each raw material is produced from place to sale. All the evidence between places proves that this method saves time and money. In addition, this kind of blockchain can also be used to prevent food-borne diseases and enable member companies to trace the origin of harmful materials that may cause diseases.

Through this case, it is easy for people to understand that blockchain can solve the problem of traditional enterprise business system construction. Generally, traditional enterprise business may have information islands, that is, information subjects are not interoperable, which makes it difficult to communicate information between enterprises or departments. Or it may be difficult for multiple parties to collaborate, and there are restrictions on information flow control, privacy protection, and data sharing, resulting in low efficiency and high costs.

The technical characteristics of the blockchain fundamentally solve these problems. The existence of the technical characteristics of block chain transactions such as strong timing, traceability, difficult to tamper with, non-repudiation, and non-forgeability can make people, enterprises, and things trust each other due to “connection”, which will bring unprecedented organizational forms And business model. Through the involvement of blockchain technology in the business network, mutual trust sharing and value exchange within and between core enterprises can be formed. Through the trusted sharing of all kinds of related data, the management and service level of the enterprise in the networked age will be comprehensively improved.

According to the book, enterprise blockchain is often mistaken for a private network. In fact, access to the enterprise blockchain is controlled by managers, who formulate relevant policies to stipulate how new members can join the network. As for the visibility of the network itself (public or private) depends on how it is managed. Therefore, the enterprise blockchain is permissioned, but it is not necessarily private.

All in all, this book can answer questions such as “How can my company get real and quantifiable benefits from the blockchain?” “How to make good use of the blockchain technology in the company?” This is a great way for business management. It is a practical guide for the readers, which can help them obtain new growth opportunities, save time, cut costs, and defuse risks.