What Are Blockchains?

IT support SydneyIT support in Sydney has acquired new infrastructural tech service solutions, especially in the last several years. As cloud computing has fundamentally rewritten the rules of MSP/client relations while simultaneously bringing an abundance of innovations to the market, new infrastructural services are now available which can substantially reduce operational costs. Now, the “substantial” part of that statement comes in aggregate.

Applying IoT here can streamline production, distribution, design, and marketing. Providing mobile cloud support there can help you curtail the cost of office space rental. Hypothetically, imagine 10 cloud-based applications, each removing 3% of expense from your business. By the time you’ve got all 10 applications running, you’ve saved 30% on your annual operational costs. If those costs were in the $10 million range, that means you saved around $3 million, which is no small sum.

One innovation like this which can shave percentage points off your average costs is called a blockchain. Basically, a blockchain is a ledger that cannot be altered and acts as a transaction repository for your entire company. Transactions are entered into the digital ledger, combined in a block, and then linked to other transactions so that you’ve got a cohesive, easily accessible “ledger” with everything in essentially one spot.

Hanging up the Telephone

Here’s why a blockchain is valuable. Have you ever played the “telephone” game? This is where a dozen or so people sit in a circle, one person whispers in his neighbour’s ear: “the cheese is in the Hamptons,” and then he/she whispers in her neighbour’s ear what she heard which, in this scenario, happens to be “the sleaze is into napkins.” By the time the “telephone” has relayed the message back to the originator, it has transformed into “Wheezy little penguins.”

It’s funny when you play the telephone game, but you shouldn’t be seeing information transmission distortion like that when it comes to transactions. That can be bad for your entire business, and even the most secure methods will experience such errors using older methods of transaction transmission. There are a number of reasons why:

  • Deliberate tampering
  • Errors in transmission
  • Outright fraud
  • Simple human error

When every “node” in the “network” of your extended business has an individual who keeps his or her own ledger after a transaction, there is a tendency for them to alter that ledger, for them to construct it so that it tells the story they want. Or, they will enter information into it that isn’t accurate. The ledger can always be doctored later, should someone discover as much. IT support in Sydney, which delivers blockchain solutions, will curtail this practice by making it so that information is only shared on a need-to-know basis and alterations can’t be made, meaning deliberate tampering and outright fraud can be prevented. With everything consolidated, transmission errors and human error are all reduced. Now, say that each of those items— tampering, transmission, fraud, and human error— caused a 1% operational loss annually. That’s 4% in total, or $40k out of $1 million, and that kind of saving totally covers the cost of adopting something like a blockchain.

Securing Business

IT support in Sydney from CustomTec can help you install and maintain blockchain solutions. Contact us to secure your transactions