(rejected) What is Blockchain? Why we need Blockchain?

Blockchain starts gaining attention when Satoshi Nakamoto has created Bitcoin in 2008 to prevent double-spending. We can identify block as a type of database that stores the information digitally.

Blockchain collect the data, information, and record it into a block. After that, the block will be connected together as the newest block will carry the previous data and information, known as “Blockchain”.

The information inside the block cannot be modified, this is because every block has the own hash number, if the information inside the block has been changed then the hash number will be changed also. Hence, we can clarify the newest block by looking at the previous one if someone has modified the data then the hash number inside the new block will be different from the previous block.

After you briefly know about what is Blockchain, now I will talk about why we need blockchain. What do you think about if you are buying a counterfeited product? How you assure that you are not buying the counterfeited products?

Here we come to blockchain, as previously, what I said the information stored in the blockchain is cannot be modified. There are some characteristics of blockchain known as:

Decentralization: nobody owns it and it is an open ledger for everyone. There is nobody else who can control the blockchain, everyone having the same rights with each other.

Immutable: blockchain cannot be modified easily. Follow the hash number in the “block”, we able to track back the previous block and identified whether it is modified or not.   

Transparency: all the records are opened for everyone. All the information in the blockchain is fully disclosed to everyone.

This is the main characteristics for blockchain and it can be applied in many sectors. Supply Chain Management (SCM) is one of the sectors. Due to the blockchain is decentralized, immutable, and transparent. Therefore, it is able to apply to the SCM activities.

For example, buying a diamond ring. The whole of the process of making the diamond ring is able to record into the blockchain system and it is able to let the customer trackback the information of the diamond ring such as the carat of the diamond before and after the process, cutting, symmetry, shape, and so on. Therefore, the customer able to confirm that they are buying a real product.