Blockchain courses

What is blockchain?

A blockchain is a mechanism by which a shared, immutable ledger that stores transactions is made. These networks track assets in a business via orders, payments, production, and more.

Every transaction is recorded as a “block” of data that is connected to the blocks before and after it, creating a chain of data tracking an asset’s movement. Blockchain uses distributed ledger technology (DLT), in which transactions are recorded once and shared with all network participants.¹

Because blockchain is decentralized, and forgoes the need for a single authority to manage operations, strict security protocols that are built on computational trust are in place. Every copy of the ledger is updated whenever anyone adds a new transaction, and all transactions are encrypted before they’re added to the ledger.²

Blockchain technology only allows transactions to be added; no provision is made for altering or deleting a transaction. This makes blockchain a transparent technology, which means that it’s particularly well-suited to the finance industry.

What are the applications of blockchain?

Blockchain technology provides solutions to a range of everyday problems. Monitoring and controlling fraud in supply chains, increasing transparency at the polls through digital voting, efficient asset management, faster banking, and less paperwork and more automation in real estate and claims processing, are a few examples.³ Other applications include:

• Supply chains. Blockchain technology is able to track and trace damaged or spoiled goods, which increases visibility and accountability, and reduces waste and loss from product-wide recalls. In order for maximum back-office efficiency to be reached, the entire supply chain must include automated inputs in the blockchain network.⁴
• Transportation and logistics. With the potential to consolidate and improve the fragmented systems, manual processes, and outdated IT architecture so typically found in the transportation and logistics industry, blockchain can be used to streamline receivable collections and payments by removing the need for a middleman. Consequently, it can also reduce the number of middleman-related disputes.⁵
• Smart contracts. Typically used to enforce an agreement between collaborating parties, smart contracts are lines of code stored on a blockchain that execute automatically when certain predetermined criteria are met. All parties are assured of a desired outcome, and the contract removes the need for an intermediary.⁶

How will blockchain technology change business?

Blockchain technology is poised to play a significant role in disrupting existing business models and processes. While traditional methods of conducting business will be disrupted, blockchain-based solutions will also present plenty of opportunities for organizations that are able to adapt and innovate. Some key ways that blockchain technology is already being used include:⁷

• Storage and data management. Blockchain technology allows for confidential data, including social security numbers, to be stored and shared securely. Its decentralized nature also protects against malicious attacks that target a single system.
• Transparency. By providing entire networks with access to the same information in real time, blockchain technology is able to reduce processing times and eliminates the need for reconciliation between multiple parties.
• Security. Blockchain technology’s strong cryptography and decentralized nature make it hard for data to be altered or hacked.
• Efficiency. This technology has the potential to streamline business processes and reduce operational costs by automating back-office functions.

What is cryptocurrency?

A cryptocurrency is a digital currency, or entry in a database, that acts as a medium of exchange, using encryption technology to verify transactions and keep them secure.8 The Federal Financial Supervisory Authority (BaFin) of Germany defines cryptocurrencies as financial instruments that are “digital representations of value.” Cryptocurrencies share the following characteristics:9

• They are not issued or managed by any central financial institute or public body
• They are not legally classified as currency or money
• They can be used as payment by individuals or legal entities
• They can be used for investment purposes
• They can be traded, transmitted, and stored electronically

Tokenization, a popular concept in the cryptocurrency space, involves the process of converting material objects into digital assets.10 Some examples of the types of tokens include:11

• Currency tokens are classic cryptocurrencies, like bitcoin, that don’t get their value from assets, but from the distribution ledger itself. They’re therefore constructed on their own independent blockchains.
• Utility tokens are used within a specific ecosystem to pay for certain features or services.
• Smart contract coins are used on platforms that support self-executing contracts with the terms written directly into the code.

Why should I enroll in online blockchain courses?​​

GetSmarter’s portfolio of online blockchain courses cover the fundamentals of cryptocurrency, including its origins, transaction processes, and structure. You’ll also have the opportunity to learn about smart contracts, decentralized applications, and initial coin offerings. On some courses, you’ll be able to put your knowledge to the test by developing a blockchain solution for a real-world problem.

Whether you’re looking to change career paths or pursue new opportunities within your current role, our portfolio of blockchain courses will help you gain knowledge and skills needed to succeed.

Sources

¹(n.d). ‘What is blockchain?’. Retrieved from IBM. Accessed January 17, 2025.
²Hayes, A. (Sep, 2024). ‘Blockchain facts: What is it, how it works, and how it can be used’. Retrieved from Investopedia.
³(Jan, 2021). ‘15+ practical blockchain use cases in 2022’. Retrieved from 101 Blockchains.
⁴(May, 2019). ‘The next step for blockchain’. Retrieved from J.P. Morgan.
⁵(May, 2019). ‘The next step for blockchain’. Retrieved from J.P. Morgan.
⁶(n.d.). ‘What are smart contracts on blockchain?’. Retrieved from IBM Accessed on January 21, 2025.
⁷Reiff, N. (Jul, 2024). ‘Forget Bitcoin: Blockchain is the future’. Retrieved from Investopedia.
⁸Kaur, G. (Aug, 2024). ‘What is cryptocurrency and how does it work?’. Retrieved from Coin Telegraph.
⁹Frost, L. (Mar, 2020). ‘Germany recognizes Bitcoin as a legal financial instrument’. Retrieved from Decrypt.
¹⁰(Jul, 2024). ‘What is tokenization?’. Retrieved from McKinsey & Company.
¹¹(Aug, 2024). ‘Different types of crypto coins and tokens’. Retrieved from GeeksforGeeks.