Blockchain technology in business and development of individual blockchain solutions – what are the advantages of using this system?

Today, most data processing systems are based on centralized IT platforms located within the same organization, or on cloud solutions. If a business process requires interaction between several participants, networks and communication systems are added to make this interaction possible. Centralized systems can be the source of a single point of failure, are vulnerable to cyberattacks, and data in individual systems is often out of sync, outdated, or simply inaccurate. This increases the cost and complexity of systems, and business process participants often have to rely on trusted intermediaries to act as arbiters to approve transactions or verify the origin and accuracy of data. While the need for transparency and trust is often important, it is difficult to build and maintain a business network that meets these requirements.

In contrast to the situation described above, imagine a system based on a database network that allows all participants, on an equal footing, to efficiently and securely record, distribute and store information. In addition, it is a system that can work properly without a central manager or administrator, in which a complete history of the data is always available, and once recorded information cannot be changed. In other words, it is a system designed in such a way that the information stored and transmitted through the network has a very high level of reliability and security, and the network participants have transparent access to a common, reliable source of information. This is the simplest way to describe a blockchain-based system.

In practice, a blockchain is a distributed, shared and reliable database managed by a network of computers that operate according to predefined rules called a blockchain protocol. Each participant in the network has its own copy of the database, it acts on an equal footing and can initiate and check changes. Everyone has access to the database, but no one controls it, all changes are made based on the consensus provided by the protocol, and in some cases by the system of reward for active participation in the network. The blockchain works autonomously, without centralized control.

Blockchain ecosystem application development for businesses and companies in Kyiv and Vinnytsia – iTizzi Software Development Company

Blockchain is a new technology that has the potential to revolutionize the way partners in the digital ecosystem exchange information and use business rules. Blockchain software development allows for an entirely new class of applications and will go a long way in model and business process innovation. The advantages associated with the use of blockchain technology in Odesa, Dnipro, and Lviv are due to the features that distinguish it from traditional solutions:

• Immutability and integrity of data – confirmed transactions cannot be changed in the blockchain network, which solves one of the main difficulties in the design and operation of IT systems. Blockchain can be seen as the only version of the truth about data that is accepted by all participants in the ecosystem.
• Completeness and reliability of data – as long as the blockchain remains active, all data entered into it is available, since each node of the system has a complete copy of the blockchain, which, of course, eliminates single points of failure and the need to ensure system redundancy.
• Data security – the use of cryptographic methods and authentication (authentication) gives a higher level of security than traditional solutions.
• Decentralization of consensus – adding new data to the blockchain database requires the consent of all network participants, which eliminates the need for trusted intermediaries and allows participants in the processes implemented in the blockchain to interact directly with each other.
• Auditability – the blockchain ensures the integrity, immutability and transparency of the data stored in it, which allows accurate auditing of registered transactions.
• Innovation – blockchain technology can become the basis for building completely new business models and ecosystems, as well as for creating new value chains.

Business leaders such as IT, finance, human resources and purchasing, as well as government decision-makers and representatives of many other areas of activity, should familiarize themselves with the experience of development projects and implementation of blockchain technology in order to assess its suitability for their own. applications and processes. Indeed, thanks to the individual software solutions of the iTizzi company on the blockchain, it becomes possible to effectively protect and decentralize the company, website, business in Ukraine and Eastern Europe.