DO Masterclass Minutes: A summary of the insights and learnings from each class. 🚀
Topic: Blockchain in Business 101
Expert Speaker: Vishwas Thakkar, Founder & Head of Digital Strategy at Concinnity
This session included learning about what blockchain is, how it works, and its benefits when utilizing it.
So, without further ado, let’s get into a (summarized) recap of what we learnt in the class.
A database is a piece / pieces of information set up together to ensure convenient access and easier management & updating. Many databases are stored in computer systems and for businesses this typically refers to data records and files that contain information regarding transactions, customer data, financial statements, and product information.
As the name signifies, a blockchain simply is a chain of blocks. It is essentially a database and a digital ledger where data structures called “blocks” hold/store information.
A block is made up of transaction data, a hash, and the hash of the previous block. Each block is linked together to form a blockchain. This is the information about the sender, receiver, and the amount. Furthermore, hashing is a type of block arrangement that uses functions to encrypt the input in a finally secure format, creating new values for each input. Hashing is done using the SHA-256 algorithm (Secure Hash Algorithm) where it is nearly impossible to figure out the final output given its random nature and fixed lengths.
Fox -> Hash Function -> DFCD3454
The red fox runs across the ice -> Hash Function -> 52ED879E
The red fox walks across the ice -> Hash Function -> 46042841
In the simplest of ways, this is the process in which a transaction is completed using blockchain:
Decentralized System: Decentralization is essentially the elimination of intermediaries and lack of a single party having control over others. This is one of the major aspects of blockchain as it is not centralized like other financial instructions including banks.
Better Security: Given that each transaction is secured through algorithms, there is greater security when using blockchain, especially in the context of cryptocurrency and its transactions.
Capacity: There is a capacity to do far more transactions than a centralized institution would do given the dependence on technology more than manual labor. However, this also brings up the point of human error as transactions are still being done by humans, which provides opportunities for data leaks and security breaches (which are caused due to the fault of humans and not the blockchain).
It is extremely difficult to achieve all three sides, leading to most blockchains choosing 1 over the rest or a mixture if possible.
Given the nature of blockchain and a lack of a central authority creating the guidelines/regulations, a consensus must be reached so the “truth” can be determined. This is where Consensus Mechanisms come in!
And that’s it for this Masterclass!
Stay tuned for the next one, folks!
About the Expert: Vishwas Thakkar is the Founder and Head of Digital Strategy at Concinnity. He advises companies regarding their development and implementation of digital strategies whilst working with them to improve reporting and managing stakeholders and projects. He is also an adjunct lecturer at The University of Hong Kong and teaches courses in the blockchain, big data, digital marketing, artificial intelligence space.
Upcoming DO Masterclass: Increasing Productivity & Profitability with Hypnotherapy
Expert: Fey Wong, Founder of HumptyDumpty Hypnotherapy
Date: 19th May 2023
Time: 3 PM SGT (Singapore Time)