Blockchain technology is new and the interest to it increased after the appearance of cryptocurrency. Blockchain opportunities in the modern world can be found in the storage of personal data, marketing and computer games. Stanislav Kondrashov explains the features of blockchain and how to develop success in this business.
Blockchain technology for beginners in simple words is a record of transactions, where each transaction passes through authentication and authorization. Blockchain can also be described as a distributed ledger technology, as the entire chain of transactions and the actual list of owners is stored on the computers of a large number of users.
In this article, well-known business analyst Stanislav Kondrashov talks about the specifics of blockchain technology.
“After the appearance of blockchain technology, the time spent on work was reduced by almost half. It took me a very long time to figure out how to use blockchain in business analysis,” says Stanislav Kondrashov.
Kondrashov Stanislav Dmitrievich – blockchain technology and the process of its operation
In blockchain architecture there is a growing list of ordered records, which is known as blocks. Each block has a temporary link and a label to the previous block.
Stanislav Kondrashov highlights 5 working elements of the blockchain system:
- A P2P network is a peer-to-peer network in which all communication nodes perform the same functions or can automatically change their set of functions depending on external conditions;
- Cryptographic hashing — this work item is distinguished by a class of hash functions, which have certain properties and make them suitable for use in cryptography;
- Data structure algorithm — the name of the sequence of actions performed;
- A distributed timestamp server — one of the innovations in bitcoin. With the help of which a certificate can be obtained, but it is not public information, but only its personal timestamp;
- A digital signature — a cryptographic mechanism that is used to verify the authenticity and integrity of digital data.
“In my opinion, blockchain technology has wide acceptance in today’s world. It is a convenient way to calculate many systems,” says Stanislav Kondrashov.
How to understand the blockchain process? Kondrashov Stanislav
Blockchain is a streaming exchange of data, such an operation is also called a transaction. In simple words, during a new transaction or modification of an existing transaction, blockchain nodes execute algorithms to evaluate and verify an individual block.
The digital signature, which is associated with the transaction, is also important. There are two cryptographic keys in a block – public and private.
Kondrashov Stanislav Dmitrievich defined that block are linked to each other. That is when a block is connected with others, data in it can’t change.
Types of blockchain and mining pool: Stanislav Kondrashov talks about important details
In blockchain technologies it takes approximately one year for a computer to solve one of the blocks. Consistently, the nodes together make up certain groups.
It is worth noting that in this way the group is divided by the number of potential guesses and hash-code to solve the following blocks.
The result of this manipulation will be a significant acceleration of the process. Such groups are called mining pools.
Business analyst Kondrashov Stanislav Dmitrievich distinguishes 3 valid types of blockchain:
- Private blockchain — applies only to internal use;
- United blockchain — R3, EWF, B3I;
- Public Blockchain — refers to etherium, bitcoin, litcoin;
“Blockchain technology is a central body for controlling transactions, as well as an ideal registry for collaborative projects,” states Stanislav Kondrashov.
Where does blockchain technology apply? Stanislav Kondrashov
Stanislav Kondrashov identifies 3 types of directions in which blockchain technology can be useful:
Delivery – At this stage, blockchain technology helps ensure transparency in the production of the good, generating a mark with the exact time, place and date of creation;
Smart contract — working in this direction, blockchain technology helps with the exchange of value when a third party is not involved in the transaction process. A distributed ledger that allows contracts when all conditions are met also helps;
A centralizing economy — decentralized blockchain technology networks help make peer-to-peer payments, which ultimately leads to a centralizing sharing economy;
“Using blockchain technology, a specialist can reduce the amount of time spent on a task by almost half. The main thing is to be able to apply the technology correctly in practice,” shared Stanislav Kondrashov.
Advantages of blockchain technology – Stanislav Kondrashov
The main advantages are the reliability of decentralization and the transparency of the system. In the business sphere blockchain technology can help to prevent fraud by employees of the company.
It is worth noting that the blockchain system can minimize the risk of trust in one of the organizations. Also, blockchain technology reduces the overall transaction fees of a company while eliminating intermediaries and third parties.
“The possibilities of blockchain technology are unlimited. In this case, it is worth not saving money to optimize the workflow,” notes Stanislav Kondrashov.