Blockchain is a massive technology-breakthrough that has taken the business landscape by storm. It’s believed that it has become the latest big buzz technology across industries worldwide. Fueled by cryptocurrencies’ phenomenal rise, blockchain has never been this accessible before.
The common idea about blockchain is it’s the technology that powers the famous Bitcoin. It’s not all wrong since it was its original purpose. But now, blockchain is capable of doing so much more.
The complexities of the technology itself may be hard to grasp even for the tech-savvy, let alone the tech-noobs. Despite this, the growing popularity of this technology is too visible to ignore.
In this article, we’re going to get more in-depth with this arguably future-proof technology. We’re going to dive into everything you need to know about the blockchain.
Blockchain Technology 101: What Is It
The simplest way to define blockchain is a decentralized ledger of all transactions in a peer-to-peer network. In this case, everyone in the network can monitor and confirm the transactions without going through a central certifying authority.
Let’s make it simpler. If you want to define the blockchain at its most basic level, it is just literally the block (digital pieces of information) in the chain (a public database).
Blockchain Technology 101: How Blockchain Works
You might be thinking, “there are already a lot of processes to track digital data, so what makes blockchain so special?”
This is where all the fun begins.
Since blockchain is a decentralized ledger, it’s distributed to a vast network of computers. The decentralizing of information prevents any data from getting tampered.
This is what makes blockchain special: it is inherently resistant to data modification. Namely, it builds trust in the data.
Before a new block successfully added to the chain, it has to follow some “rules.” The first thing is that it has to solve the cryptographic puzzle, thus creating the block.
Next, the computer that solved the puzzle distributes the solution to other computers on the network. The network then verifies the solution before it allows the new block added to the chain. In this case, every single block that is added to the chain has been confirmed to be true.
This entire process ensures that you can trust every single block on the chain. Since it’s building trust for everyone on the network, you have the opportunity to access the data directly in real-time.
Blockchain Technology 101: What Makes Blockchain is So Appealing?
One of the best benefits of using blockchain-based technology is that it provides a non-destructive way to track any data changes over time. This is why it’s convincing some companies to adapt to the technology.
Other than that, there are some other advantages that blockchain offers:
1. It offers high security
The decentralization provides higher protection of data since there’s no central server involved. It becomes an effective way to prevent hacker attacks.
2. Easier transaction and verification
Since there’s no need for intermediaries as the third-party, the process of transaction is much more cost-effective and time-saving. This type of trusted peer-to-peer interaction of data can transform the way you access and transact with everyone on the network.
3. High transparency and traceability
Everyone on the network will notice every change made in the blockchain. It allows you to track transaction history and other activities easier because every node in the network agrees on each change made.
Blockchain Technology 101: Who Needs Blockchain?
A lot of big corporations have been signaling interest in blockchain technology for the past few years. Since the technology offers much more than just digital asset security and tracker, companies are now making tremendous strides to adopt the technology for its possible benefits in business.
Here are some types of companies that have adapted blockchain-based technology:
Blockchain is essential in cryptocurrencies. It allows blockchain-based cryptocurrencies to be distributed without a regulating authority. In this case, using blockchain technology is a smart way to minimize the cost and effort.
Since blockchain offers tight security, it is beneficial for trading platforms to maintain and protect their server.
As we know that blockchain is inherently resistant to data modification. This is essential to track the supply chain and any other logistics activities.
With blockchain technology, payment gateways companies can seamlessly secure and retain all the payment indefinitely on the blockchain ledger. It also engages new customers who prefer using cryptocurrencies to pay for goods or services.
Blockchain-based technology healthcare companies can safely and securely manage massive amounts of their patient data. It also helps healthcare companies to deflate their current spending bubble.
Blockchain Startups: Drawbacks
Now, you know that blockchain is a technology-breakthrough to secure your massive amount of digital data. Now, startups try to jump into the bandwagon with new ideas and creativity to the table.
But the catch is not every startup can keep up with the technology. Most of them dive headfirst into creating a blockchain-based solution without even grasping if it has any commercial viability at all.
Also, the vast majority of customers are not too familiar with blockchain-based technology. The high complexity of explanation might be the main reason why the customers don’t even bother to get to know more about the technology.
It’s no surprise that many blockchain startups failed and close their shop.
Rebuilding Blockchain Startup Strategy Using Alternatives
To avoid those drawbacks, you should prepare yourself more and use smart ways to explain what the blockchain is all about concisely.
Here two of the best medium you can use as a tool to seamlessly introduce the blockchain technology and what is it all about to your potential customers:
Animated Explainer Videos
An animated explainer video helps you to simplify the complex information you want to deliver. The captivating storyline and endearing characters help the viewers digest and remember easily the focal message you delivered in a short span of time.
By delivering complex information clearly, a well-crafted helps your viewers to connect the dots between the ideas to see the bigger picture. Even the complex ideas of blockchain can be breaking down in a friendly, accessible way using an animated explainer video.
The best thing about animation is that it’s able to illustrate any concept or ideas beyond the boundaries of live-action videos. Now, the unfamiliarity of your viewers with blockchain is no longer your outgoing concern.
Infographics can be another essential tool that offers easy-to-digest information using visual data. The eye-catching graphic design seamlessly grabs your viewers’ attention from the first glance.
Not to mention the reliable data and statistics that can convince them and enhance credibility in the marketplace. Well-designed infographics convey crucial pieces of information in a small space. It only offers the essential facts and accurately delivers them.
For example, this blockchain infographics seamlessly give a concise explanation to simplify complex ideas so it can be much easier to understand.
If you want to define blockchain in the simplest of terms, it’s a decentralized ledger that can track and secure the provenance of a digital asset.
Offering high security and transparency, many companies use it mainly to reduce cost and effort in order to reduce the pain of managing their massive amounts of data.
The catch is that the technology is so complex and hard to grasp— both for the companies or the customers. This is the main reason why most startups close their shops.
Nevertheless, using the help of visual like animated explainer video or infographics is the best way to simplify the complex ideas of the technology and help everyone to understand what it is all about.