For the tech-savvy everyday internet users, blockchain technology is an exciting new concept. To those who may not be so keen to technology, blockchain technology could be a foreign concept. What some consider to be the newest backbone to the internet, blockchain technology is bringing huge changes to the globe and it’s major functionality. Although you don’t need to understand the ins and outs of blockchain technology, you do need to know what it is. Whether you are or aren’t up to date on the latest tech news, here’s what you need to know about blockchain technology.
Blockchain technology is much like driving a car. Although you may not know exactly what each part to a car does, or the physics behind moving cars, you know how to drive one. In the same sense, this guide will help you control your knowledge of blockchain technology without going beyond your comprehension.
Known as “digital gold” Cryptocurrency Bitcoin has been around for a little while. Bitcoin emerged in 2008, shortly after Occupy Wall Street brought up the debacle of big banks misusing money among various ways. Bitcoin came about in order to put the sellers in charge of their money, eliminated the third party of banks and lenders. Bitcoin is either a reference to virtual money or the technology itself.
The basic function of bitcoin occurs when a person purchases a bitcoin– a 16 digit code that serves as a signature and is encrypted with digital symbols. When the encrypted code is decoded via a smartphone, that is what’s called cryptocurrency. A buyer and seller can exchange money for goods through sending and decoding cryptocurrency. This digital exchange is what’s drastically changing the world.
What makes cryptocurrency and bitcoin so enticing is that it’s incorruptible. Although its a virtual realm of money, no hacker can break the codes and ruin the bitcoin. Much like a shared Google drive, multiple networks called “nodes” host the technology, and therefore not one person can hack the security of bitcoin technology.
Because blockchain technology radically changes the primary function of transactions, this also means that it changes the supply chain. One major pro to blockchain technology sweeping the supply chain is that it’s faster and cheaper. Two qualities that every trader wants in their transaction.
Another major benefit to blockchain technology impacting procurement is its transparency. This builds instant trust because suppliers have real-time access to the transaction. With manipulation being impossible, this correlates a stronger client relationship between a business and the supplier.
The procurement industry has to constantly evolve with the digital age, and blockchain technology is no exception.