Why Blockchain is Integral in Pushing DX Forward
Before understanding why blockchain is important in pushing digital transformation (DX), you must first be able to define and understand what a blockchain is. From here, you can distinguish digital transformation examples and the fundamental factors of why blockchains can be used in digital transformation.
What is Blockchain?
Breaking it down, there are two words to consider: block and chain. The “block” refers to digital information while “chain” refers to its [public] database. To add to that, “blocks” in a blockchain have three essential parts:
- Blocks store information of transactions and its details
- Blocks store information of the person who made the transaction
- Blocks store information of their identity differing from other blocks
To put it simply, when a block stores new data, it adds up to the blockchain.
How Does Blockchain Work?
Now that you know what a blockchain is, then you move on to the next step which is finding out how it works. For blockchains, there is a process for it to actually work.
- There must be a transaction. For example, you want to buy a blender on eBay. After thinking it over, you finally decide to purchase it.
- Your transaction should be verified. An array of computers then proceed on confirming whether or not your purchase really happened.
- The transaction is then stored in a block joined together with hundreds and thousands of the same thing.
- Your transaction is then given a [unique] code.
After all these processes, your blockchain can now be viewed publicly along with all the other blockchains. But there’s no need to worry because although these blockchains are available for public viewing, personal information or details will not be displayed in public.
Blockchain and Its Importance
Blockchain is one of the most highly used systems or strategies in the world today. Not only can it be used through transactions online, but blockchains can also be used in many different ways which can help make lives more comfortable.
Basically, blockchain has enough data supply to contribute to the advancement and improvement of digital transformation. In today’s time, blockchains can be used almost everywhere in increasing numbers of businesses that use DX.
One of the best examples of businesses where blockchains can be used is banks. Who could better use blockchains in business than finance and banking itself? You can start relating steps one to two here:
- Your transaction could be your deposit of cash or check.
- Next, your verification will arrive shortly after your transaction/deposit. Although banks only operate five days a week and say you transacted on Friday afternoon, then your confirmation will come on Monday morning. Nevertheless, a verification will notify you once they have seen your transaction.
Rather than doing all these on paper while committing a few mistakes, it’s always best to rely on technology to ease up your life and get things done with hassle-free.
In summary, blockchains are stored up data or information about individual transactions which help in the advancement and improvement of digital transformation. In today’s time, almost everyone in the business industry is already transitioning from the old, traditional ways of paper to new, innovative ways through digital transformation.