Blog : What is blockchain technology?
Blockchain technology is the backbone of Foodmach Flex, our Machine-as-a-Service (MaaS) financing offer.
But what exactly is it?
Blockchain is basically a digital record of transactions. It is designed to be a secure and immutable digital ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.
While Blockchain is commonly associated with the cryptocurrency Bitcoin, it does not require, nor does Foodmach FLEX make use, of Bitcoin or any cryptocurrency.
Blockchain brings trust, accountability, and transparency to digital transactions. The name comes from its structure, in which individual records, called blocks, are linked together in single list, called a chain.
It is typically managed by a peer-to-peer network (with no centralised admin system) collectively adhering to a protocol for inter-node communication and validating new blocks.
Once recorded, the data in any given block cannot be altered retroactively without alteration of all subsequent blocks, which requires consensus of the network majority.
Its decentralised nature and cryptographic algorithm make it virtually immune to attack. It is said that hacking a blockchain is close to impossible.
In a world where cyber security has become a key issue for personal, corporate, and national security, blockchain is a potentially revolutionary technology.
In the context of Foodmach FLEX, where our customers pay for the output of our equipment (pay per use), rather than buying the equipment upfront, blockchain logs machine output and calculates transactional payments.
It is used to securely document machine data and execute monetary transactions in real-time. It's a finance model more commonly referred to as MaaS, or Machinery-as-a-Service.
By using a shared digital ledger, transactions between parties are recorded only once, eliminating duplication of effort and associated risk of errors. All records are immutable, no participant can change or tamper with a transaction after it’s been recorded to the shared ledger.
In order to speed up transactions, smart contracts (a set of rules defined between the program participants) are stored on the blockchain and executed automatically.
When we provide you with new automation for your production line under the Foodmach FLEX arrangement, here’s what happens:
If you'd like to have a chat about how Foodmach FLEX can help you update your packaging line automation,
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