You may have heard about blockchain solutions but aren’t sure exactly what that means. While blockchain started and is often associated with Bitcoin, it has many uses in today’s society. In short, blockchain solutions are a method for storing transactional data for a reliable, digital record of transactions made between two parties. The following are some of the things you need to know about blockchains.
There Are Various Types
There are three primary types of blockchain solutions, each with its own advantages and purposes. Most people are familiar with the public blockchains like those used for Bitcoin. These blockchains are open to anyone, and anyone can see the information, though specific details are encrypted for protection, such as the names of the parties involved in each transaction. Private blockchains are those owned by a company with limited access. Finally, consortium blockchains are a hybrid of the two previous types, providing more flexibility and less control.
Instead of relying on a third party to complete transactions between two people or businesses, blockchain solutions provide more freedom. Individuals or corporations can complete transactions securely within the blockchain while cutting out the middleman. This opportunity eliminates the fees third parties often charge and gives individuals more control over their transactions.
A Secure Digital Ledger
In the simplest terms, blockchain solutions work as secure digital ledgers to track transactions and create clear records. Because data can’t be altered once it enters the blockchain, users can rest assured that they have a transparent record of any transactions they send or receive. With a clear view of where the money goes and when, it’s a simplified way to track transactions for smoother audits and better financial tracking.