If you are looking for an introduction to blockchain technology, you have come to the right place. This guide will provide a comprehensive overview of blockchain and its various applications.
Blockchain is a decentralised and immutable ledger that enables the secure recording of transactions and the tracking of assets. Once data is recorded, it cannot be altered or deleted, regardless of the number of users with access. Additionally, no single individual or entity has control over the system, ensuring transparency and security.
One of blockchain’s key advantages is its ability to provide advanced, end-to-end tracking for a wide range of applications, from financial transactions to asset management. Its immutability ensures that all records remain permanent and verifiable. The first recorded Bitcoin transaction on a blockchain took place in 2009. Since then, the technology has undergone significant advancements, shaping various industries over the past fifteen years.
Are there different types of blockchain?
A blockchain network can be private, public, permissioned, or built by a consortium.
- Private – Who can participate is governed by one organisation. This organisation will also carry out necessary maintenance. This is a popular option for corporations.
- Public – Anyone can join and participate. This type is popular for crypto assets.
- Permissioned or hybrid – Only certain people can participate, and the type of transactions are controlled. Both private and public blockchains can be permissioned, but it is more common with private networks. An invite is sent to participants or access is requested.
- Consortium – Similar to a private and permissioned network, but controlled by multiple organisations, consortium blockchains share the responsibility of maintenance and control.
How does blockchain work?
Each ‘block’ of data represents a recorded transaction. A bit like a cell in a spreadsheet. The data is encrypted and given a hexadecimal number called a hash. Each block is connected to the ones before and after it (hence the ‘chain’ in ‘blockchain’).
The chain of data records how an asset moves between places and people in sequence and adds this information to its ledger. The programs that manage these tasks are known as ‘scripts’. The blockchain is then distributed, so there are multiple versions saved on different machines. These copies must match for it to be valid.
What are the benefits of blockchain technology?
There are many advantages of blockchain technology. Here are just a few:
Trust and security
The data is immutable, access can be controlled, and transactions are approved by multiple computers. This means users can trust that the information is accurate and unaffected. Not even an administrator can delete a transaction, so there is little to no risk of human error.
The fact that blockchain is distributed means that you are not reliant on storage on one central system. Validation is also made by the network. That makes it harder to tamper with and negates access issues caused by equipment downtime.
A private blockchain means only vetted network members can be granted access. However, even on a public blockchain, although users can see the transaction has been made, personal identifying information is kept private to the users involved.
Efficiency
Sometimes a traditional transaction can take days to clear, especially if it has been placed on a Friday. Blockchain can be given a set of rules called a ‘smart contract’ and this can run automatically, making processing possible 24/7. This significantly speeds up transactions and avoids office hour delays.
How quickly a blockchain transaction takes can vary, but some take just minutes.
Cost
With blockchain technology, there is no need for third-party verification from a bank or notary. In fact, you don’t need a bank account at all. This not only helps with efficiency but also costs, as it often means processing fees are removed.
What is blockchain used for?
With its many benefits, blockchain technology is being adopted by more and more businesses and industries every day. In fact, there are now hundreds of thousands of chains. It is most commonly known for facilitating the trade and security of cryptocurrencies, like Bitcoin. However, other uses include:
- Education certification – Blockchain can be used to send educational certificates to prevent fraud and quickly approve verification when individuals apply for jobs or further study. For example, to tackle forgeries, the University of Birmingham has introduced a multi-signature blockchain-based system using Java, JavaScript, and the 2016 credential system from MIT Media Lab.
- Healthcare record keeping – Handling physical records can be extremely inefficient both in terms of time and cost. Blockchain offers the opportunity to digitalise records, remove the risk of human error, and massively improve efficiencies. This could apply to everything from healthcare to property.
- Supply chain tracking – From food to materials, blockchain can help prove the authenticity of a product and where supplies originated to truthfully use labels such as ‘fair trade’ or ‘organic’. For example, Nestle Oceania uses Amazon Managed Blockchain to invite its partners to collaborate in their supply chain transparency efforts. This allows customers to track products on the blockchain from farm to consumption.
- Fashion – Similarly, when purchasing clothing or accessories, consumers may want to know if what they are buying has been ethically produced, if the product is sustainable, or whether they’re genuine luxury goods. Blockchain can provide this traceability and authentication.
- Music and film streaming – Centralised companies, like Spotify, will pay out royalties to artists once their music is played but there is often a long wait for these transactions to process as there are middlemen (banks) and fees to be deducted. Blockchain could help automate this process using smart contracts to make the whole payment process more efficient.
- Voting – In 2018, US state West Virginia trialled blockchain to encourage voter turnout and eliminate the possibility of election fraud. Blockchain could help transform other voting systems to remove the risk of tampering, reduce the resources required, and speed up the process of securing results.
Learn more at the London Blockchain Conference
If you’ve enjoyed this whistle-stop tour of all things blockchain and would like to learn more about how it is helping to shape the future of business, you’re sure to find the talks and presentations at the London Blockchain Conference interesting.
Check out our event series and our 2025 conference agenda to learn more.
Read more: Unlocking the potential of blockchain: Insights from the first London Blockchain Conference Webinar
