Why is the blockchain so useful?

Daily system operation records

Today's transactional networks are little more than minor versioning of business records in networked systems, where systems transact with each other but keep their own records of transactions. Whether it is a Flemish tapestry in the 16th century or a security today, provenance must be established at every sale to ensure that the business selling the item has a chain of ownership that verifies its ownership.

The rest looks like a network interwoven like this.

This process, which was long ago documented by slates or files, has been replaced by hard drives and cloud platforms, but the underlying structure is the same. A system for managing the identities of every participant in the network does not exist, because it takes a lot of time to clean up the records of securities transactions (the world contains more than trillions of information), and transactions must be automatically identified and executed. In addition, each database is unique in a vast network of interweaves. Therefore, it can represent the failure point.

Blockchain differentiation

What if some of the mouse nest inefficient systems in modern online transactions were replaced by commercial systems that have standard methods for creating identifiers, and which also automatically execute transactions and store data? Can we trust such a system if lists of transactions can also be used as vouchers for an asset transaction, and these lists cannot be updated once written?

Business networks are likely to look like this.

In a blockchain, each participant has its own copy of the ledger. In addition, every update that occurs is shareable. Unlike today's system, where each participant can only update their own ledger information, blockchain is open and shareable for every ledger information to be updated.

Through a shared ledger of information, it is possible to participate in the collaboration of business networks. Through this model, blockchain reduces the time, cost, and risk of processing private information, while increasing trust and visibility between networks.

You now understand why blockchains are so useful. There are many other important details, but they all involve some basic concepts of information sharing and process processing.

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