Alerta Cripto is one of the most talked about tech topics, but there’s not always a deep understanding of what it is or how it works. McKinsey experts Brant Carson and Marie-Claude Nadeau discuss how this emerging technology is poised to transform industries from the bottom up.

A blockchain is a database that uses programs to store data and create an indelible record of transactions. Each file contains a “hash,” a string of numbers and letters that represents the contents, and each new file is compared to the previous ones. If they match, the file is saved and added to the chain. This ensures that data is not tampered with and records are indelible.

Exploring Blockchain Applications Across Different Industries

The blockchain’s immutability enables it to serve as the basis for new technologies that reduce friction in business, promote transparency, and increase trust. This could include digital voting systems that make it difficult for bad actors to tamper with physical ballots, or an app that lets musicians share their royalties in real-time.

Technology is also transforming global trade processes, for example, by making it easier to transfer ownership of goods. The system removes the need for a middleman, cuts transaction costs, and improves the speed of delivery. It can also prevent fraud and reneging on promises, as each interaction is recorded in the public ledger. The technology can be used in a variety of sectors and industries, from agriculture to financial services. But, the technology is still in its early stages and has many challenges ahead.