What is Blockchain?

What is Blockchain?

Thato Nwamadi
January 9, 2023
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What is Blockchain?

To start, blockchain is often confused with bitcoin, however in actuality blockchain is the technology stack that bitcoin is built on. As indicated by the name, blockchain is a chain of blocks that contain various different data. The data within these blocks depends on what type of blockchain it is. Blockchain is a distributed ledger that is open to the public. Instead of using a central management mechanism to facilitate and authorise transactions, it uses a distributed peer-to-peer network. Whereby all the nodes on the network need to verify a transaction in order for it to be approved. Once a transaction has been approved it is added to the chain and its data stored within the chain. This is why it makes it impossible to manipulate the blockchain distributed ledger technology.  

Opportunities for the use of blockchain in today’s world are endless.

However, let’s take a quick look at how it can improve business processes. A good example to look at would be supply chain management. Blockchain enables you to track products  from the early stages of production and raw materials right through until the product has been bought off the store shelf in any part of the world. Therefore, blockchain provides a very transparent overview on business processes, reduces duplications and in doing so prevents theft and copyright infringement.

Let’s take a look at two additional applications that have been built upon the blockchain technology. Firstly there is the financial application of blockchain. Nowadays you no longer have to send money via the bank, instead you can send it directly to an individual over the blockchain. Making cross border payments much more efficient as well as ruling out obstructive international regulations. Secondly, there are also Smart contracts that are built on the blockchain, whereby a set of predetermined terms are set in place and are to be adhered to, unable to be altered once the contract has been signed. Only releasing funds once the predetermined goals have been achieved.

Sovtech is no stranger to blockchain technology.

In fact we actually built Africa’s first Cryptocurrency, Project UBU. This Universal Basic Unit consists of four primary components, firstly the UBU, a freely issued digital token of exchange that derives its value from under-utilised assets. Secondly the treasury, an algorithmically programmed blockchain issuer of UBU’s. Thirdly the UBX, a crypto token that acts as the bootstrap mechanism by rewarding certain classes of participants for the risk they invest in the ecosystem. And lastly, a freely available powerful global marketing platform that allows certain participants to leverage network effects for exponential returns.

As seen on FOX, Digital journal, NCN, Market Watch, Bezinga and more