Practical blockchain applications
Blocked Out?
© Lead Image © Dmitry Sunagatov, Fotolia.com
After all the hype, we look at where blockchain is being used today outside cryptocurrencies.
The success of Bitcoin not only prompted numerous other cryptocurrencies, but it also put blockchain in the spotlight for the IT industry. Investors jumped on the bandwagon, companies appointed blockchain managers, and countless studies and pilot projects explored the potential applications. But what remains of the former hype? This article sets out on a surprisingly rocky path in the search for clues about where blockchain is being used today.
A blockchain stores data blocks in a strict sequence. Unlike in a conventional database, these blocks are stored in a chain. In order to detect manipulation, each newly added block contains a checksum of the previous block, while other sophisticated techniques ensure that the entire data chain can be stored in a decentralized or distributed manner.
Blockchain's functionality makes it suitable for accounting: It is tamper-proof and every change can be tracked, like a kind of distributed ledger. Blockchain is also ideal for storing individual tokens that represent passwords, images, or currency units, for example.
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