You are here: Home - Better Business - Business Skills -

Blockchain: Your essential guide to the basics

by:
  • 10/08/2018
  • 0
Blockchain: Your essential guide to the basics
It may not be long before block chain goes mainstream, financial services provider Deloitte has predicted. Here's Mortgage Solutions' easy guide to this secure, efficiency-driving software.

 

What is blockchain?

Blockchain is a distributed ledger technology that allows digital assets to be transacted and traded in real time, keeping a permanent and an irreversible record.

It is more secure than other tools as its permanent and irreversible nature reduces the possibility of fraud or errors.

The definition comes from the use of data elements encrypted in blocks of computer code, chained together across a shared ledger through complex coding, or cryptology. So, if someone tries to hack the ledger, it is immediately identified by the involved parties and the chain falls apart.

 

How did it develop?

 

It originally emerged as the accounting method for the virtual currency Bitcoin and it is already appearing in a variety of commercial applications today, for payments or compliance, for example, almost in real time.

 

Whats the difference between business and public blockchain?

 

Business blockchain harnessed by several companies uses shared, secure ledger technology so everyone can see each transaction in real time. This information and data is restricted to participating users.

Public blockchains support cryptocurrencies, or digitally mined currencies like Bitcoin, Ethereum and Ripple and the rising and falling value of these is publicly-listed information.

 

How can blockchain be applied to business?

 

Invoicing and payments could be fully-automated and self-validating, alongside much of the company accounting process. Blockchain could also help with fraud and risk detection, alongside a host of other functions.

 

How is it useful?

Blockchain could be harnessed for long-term record keeping, when many parties need to access, create or maintain records over an extended time frame.

Also, for many regulatory considerations, the software is a reliable way to manage, document and report on  compliance.

Blockchain can also eliminate the lag in payment cycles and asset transfer which reduces cost, improves accuracy and provides compliance efficiency.

Blockchain can be an effective way to streamline transaction processing when multiple separate companies need to write or add to the ledger.

However, when the business purpose is focused on a single process or transaction, blockchain may not be practical.

 

With thanks to Deloitte’s White Paper on Blockchain

 

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • Richard Beardshaw, head of sales, mortgage intermediaries at HSBC UK for Intermediaries welcoming the brokers to to… https://t.co/897XNMpbFi
  • We are in Allianz Park today for the first in the series of HSBC UK for Intermediaries Breakfast Seminars https://t.co/7rZZDSqmSM
  • At this year’s Later Life Lending Event Richard Rowntree from Bank of Ireland for Intermediaries will be presenting… https://t.co/izCPwrsOYw
Read previous post:
Two-year mortgage rates hit highest level since July 2016 – Moneyfacts

Two-year mortgage rates have crept to their highest level in more than two years, as lenders continue to hike costs.

Close