You may have already seen the term blockchain. In recent years, this concept has gained scale, mainly due to Bitcoin and crypto assets. It has been used for various purposes like business and process optimization. After all, blockchain exists to bring more security and transparency to data storage and transaction recording. Understand how it can be effective regardless of the size and industry of your organization.

 

What is blockchain?

Actually, blockchain is as simple a concept as it seems, but let's start at the beginning. In an English translation, blockchain means a chain of blocks, but what does it mean in practice? 

Basically, it is a technology that acts as a kind of database, grouping information and linking them through encryption. Blockchain acts as a digital accounting book or ledger, a collective transaction recording system. That is, instead of storing your data in one place, like a single computer, blockchain distributes it across many connected computers. 

This technology can record any type of transaction, from financial transactions to real estate purchases. But don't worry, we will discuss some more examples later. 

Blockchain aims to make operations more secure. It achieves this by having an immutable, transparent, secure, and decentralized database, accessible to all users participating in the same blockchain network.

 

How was it created?

The first practical application of blockchain was reported on October 31, 2008, with the emergence of Bitcoin. It is the first cryptocurrency launched in the market and the most valuable digital asset in the world. 

On this date, the pseudonymous Satoshi Nakamoto published an article entitled "Bitcoin: A Peer-to-Peer Electronic Cash System". In it, this user presents how blockchain is being used to make Bitcoin a reality. Shortly after Nakamoto disappeared from online discussion forums, and to this day not much is known about his identity, and there is even a possibility that he is not a single user, but a group of people. 

Despite not being the same thing, blockchain and bitcoin are very intertwined and many people may confuse their functions. To help you, we can imagine it this way: writing was invented to facilitate mathematical calculations, but today it is used for many other tasks besides doing math.

 

Why has it become such an important technology?

We can agree that having access to information is very valuable these days, right? Well, blockchain was seen as revolutionary to update, optimize and bring more security to the way we store our information. 

Through the decentralization of information control resources, the immutability of recorded data, and consensus among users about movement on the network, blockchain has become very relevant for organizations. 

The technology is able to provide information in real-time, in a completely transparent way, and still share it with any user who wants to. The blockchain network has to relinquish control of all this data without the organization responsible for it. 

Thus, blockchain can manage payments, production lines, and logistics systems, among others. Moreover, since all users have access to the same transaction information and can verify its authenticity, this process becomes very secure and efficient.

 

How does the blockchain work?

In very simple terms, blockchain works by grouping data into blocks and linking them in a linear and chronological way. Let's understand in more detail how this process works: 

Record transactions as data blocks. These blocks typically contain the block registration date and time, the number of assets transferred, the parties to the transaction, and the block hash. We will explain later. 

Obtain consent from participants that the transaction is valid. This is done by miners, users connected to the blockchain network. 

Connect the newly mined block to the previous block, thus creating a chain of data about the resource you are tracking. This is where hashes come into play. These are encrypted unique codes that act as block identifiers. Each block contains its hash and the hash of the previous block, making the process more secure. This creates an immutable chain of information - a blockchain. 

Please share information or accounts. All network participants then receive a copy of the transaction and the updated blockchain. 

With the development and development of technology, it has become possible to create smart contracts or smart contracts in English. They operate as programs within the blockchain that run according to pre-established rules, further optimizing various processes. 

With smart contracts, approving financing, for example, becomes much faster. Analysis of the request is done automatically according to your parameters and does not depend on external intermediaries, such as a bank.

 

How to start a business with Blockchain?

This technology can revolutionize your professional life and improve your finances. This article is for you if you want to start a professional career related to blockchain and want to know how to get started. 

Blockchain is a technology that allows people and companies to share information in a secure and transparent way. The process of creating a new blockchain involves several steps. But they work together to enable the system to store data and manage reliable transactions between users. 

This technological platform is being used to create new companies. Some of the Blockchain-based businesses are Bitwage, Bitcoin Teller Machines, Ethereum, etc. 

On the other hand, this platform is considered an online transaction technology and value exchange, which becomes an effective means of business financing. This is one of the main reasons why entrepreneurs should consider starting a business with blockchain.

 

Blockchain business models

A blockchain business model can be defined as a set of rules, regulations, and procedures that allow the integration of legal requirements with the technical characteristics of the protocol and the value of its participants. 

They project a new way of creating value. A business model through blockchain allows reducing both operational and financial costs. 

Technology enables the development of products and services that previously did not exist or was too expensive, such as instant transactions without intermediaries or decentralized systems without physical servers, and can be considered the most profitable business in all of history. 

The blockchain business model is based on the idea that participants must trust each other. Not much is known about how blockchain-based business models will work. But, there are some ideas that can inspire entrepreneurs interested in such technologies.

 

Traditional business model

 

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The typical business model, which is the most familiar and with which we are all familiar, is based on an intermediary acting as the seller and buyer of a product or service. 

In this case, the intermediary does not provide any additional value to the client but simply plays the role of "intermediary" so that they are able to sell their product or service, in many cases without the need to use technology as a basis. 

A traditional business model is a form of organization that has been around since at least the Middle Ages. In this form of organization, individuals come together to create a project that allows them to benefit from the shared and cooperative use of resources. 

For example, if you want to sell your home, the first thing you'll do is hire a real estate agent. The agent is responsible for finding buyers for the property and negotiating the final price with them. In other words, what he does is provide services not available in the decentralized market provided by blockchain technology. 

For many entrepreneurs, the traditional business model is what they know best. This means it is an idea for a new product or service that tries to compete in the current industry and offer something different. 

Blockchain-based business models combine the advantages of traditional markets with the advantages of cryptocurrencies, such as decentralization and security. 

Traditional market commercial activities require intermediaries to organize transactions between participants. In such a model, entrepreneurs have to deal with the high associated costs as well as the management and administration of the process.

  

Blockchain Business Types

 

●      Exchange and purchase of tokens

Entrepreneurs can use such models to create new ways for their customers to buy and sell products and services. The system works by issuing and selling tokens, which can be traded on the secondary market like any other financial asset. 

Investors buy tokens to earn a return when the price rises. In this model, profits are attributed to token owners and not to the blockchain project.

 

●      Creation of development platforms 

Development platforms are websites that allow users to build their own decentralized applications. Users can access the source code and modify it to improve the system. Development platforms are an important part of the blockchain ecosystem and offer an easy way to create new services and products.

 

Conclusion

A few years ago, no one knew what this technology was, and now it is present in all kinds of industries, where it is possible to create decentralized and distributed systems based on mutual trust between participants. 

It makes it possible to exchange data and transactions without intermediaries or traditional financial entities.