“Without transforming the business process, Blockchain only offers the potential of incremental value in reducing TCO.”

― Tom Golway.

Blockchain (distributed ledger technologies) is a list of records that are called “blocks”, linked by cryptography. The cryptocurrencies were born to revolutionize the financial sector by reducing transaction costs, introducing privacy, and improving convenience.

In general, they are considered a new network that helps to decentralize trade, allowing more “peer-to-peer” transactions; which at the time is a kind of “safe deposit box” for retail data, offering a digital method for storing and sharing data between multiple stakeholders, avoiding third parties.

Small businesses have simplification and security as their top priorities, especially while talking about warehousing and transactions, that is why the usage of blockchain is their best option. This sophisticated currency sometimes looks like something we should not trust, but it is not like that because technology gives us a lot of tools that make everything easier.

At the time security is our main priority, the usage of blockchain technology helps us to fight against this issue; first, because it works with “making in real-time” and also because it uses an advanced cryptography to store information on computers, so by this way we would not need third parties, like banks, in transactions, legal agreements, and other contracts.

Many businesses have been implementing this, which is Macy’s case. While Macy’s made a study named “Chain Integration Project" (CHIP) they found blockchain to be a promising way to share serialized data after following tens of thousands of products including Nike Kids’ Air Force 1 shoes and Michael Kors parkas as they moved between distribution centers.

It also solves personal data problems, blockchain technology that makes data near impossible to change, with decentralized end-to-end encryption data services replacing traditional encryption tools.

Blockchain main characteristics are the following:

• Peer-to-peer system.Here the communication occurs directly between peers.
• Transparence.Every transaction and its associated value are visible to anyone with access to the system. Each blockchain has a unique 30-plus-character alphanumeric address to identify itself. Users can choose to remain anonymous or provide their identity to others. The transactions are made between blockchain addresses.
• Records can’t be modified.When a transaction is entered in the database and the accounts are updated, the records cannot be modified, because they’re linked to every transaction record that came before them. The algorithms and approaches recorded on the database are permanent and available to all others on the network.
• Computational logic.The transactions can be tied to computational logic, so the users can set up algorithms that automatically trigger transactions between nodes
• Their database is distributed.Every party on the blockchain has access to the database and its history and can also control the information and verify the records of its transaction partners without an intermediary.