What is blockchain? Why do we need it?

Hi everyone, I am a student from Malaysia and a big fan of blockchain. Here I will share my life and what I have learned with you.

In 2008, Satoshi Nakamoto invented Bitcoin to prevent double spending, and blockchain started to gain attention. We can recognize that a block is a database that stores information digitally.

The blockchain collects data, information and records it into blocks. The blocks are then linked together, and since the latest block carries the previous data and information, it is called a "blockchain".

The information in the block cannot be modified, this is because each block has its own hash number, if the information in the block is modified, the hash number will also be modified. So we can clarify the latest block by looking at the previous block, if someone modifies the data, the hash number inside the new block will be different from the previous block.

After you have a brief understanding of what a blockchain is, now I will talk about why we need a blockchain. What would you think if you bought a counterfeit product? How can you be sure that you are not buying a counterfeit product?

Here we come to the blockchain, as I said before, the information stored in the blockchain cannot be modified. Some of the features of blockchain are:

Decentralization: No one owns it, it is a ledger that is open to everyone. No one can control the blockchain, everyone has the same rights.

Immutable: The blockchain cannot be easily modified. Based on the hash number in the "block", we can go back to the previous block and determine if it was modified.

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

This is the main feature of blockchain and can be applied in many fields. Supply Chain Management is one of them. Since the blockchain is decentralized, immutable and transparent. Therefore, it can be applied to SCM activities.

For example, buy a diamond ring. Enabling the entire process of a diamond ring to be recorded to the blockchain system, it enables customers to track information such as the carat of the diamond ring before and after the diamond process, cut, symmetry, shape and more. Therefore, customers can confirm that they are buying a genuine product.

So have you ever wondered if the bags, shoes, and clothes you bought are real?