Technological innovation is a new product or process that is significantly better and different from previous products or processes. New products or processes applied are introduced to the market and considered innovative if they bring certain benefits to the company. Technological innovation focuses on the technological part of specific products or services rather than encompassing the entire organizational business model. It’s important to clarify that technology is not the sole source of innovation.
Definition of Innovation
Innovation is a very important process in the development of innovation, and anything new that originates from science and is beneficial to humans is called innovation.
The progress of innovation depends on science. Moreover, they may be off-target, not long-lasting, or just fantasies. Because young people have many thoughts and energy, this innovation is very similar. Nowadays, these young people are called the millennial generation.
Definition of Technological Innovation
Technological innovation is the process by which an organization or a group of individuals working outside the organization initiates efforts using technology as a source of innovation. Technology has been considered a critical component of market success and competitiveness.
Technological innovation means working on technology for the sake of technology. This more reflects the business’s desire to enhance business value by leveraging aspects of product or service technology. Moreover, most products and services originate from the combination, integration, and interaction of various technologies.
Since the late 1700s, technological advancements have been the primary driver of social change worldwide, bringing advancements in science and technology.
As a result, it has been a subject of ethical debate since the morality and justice at the beginning of the Industrial Revolution to the impact of genetic engineering, nanotechnology, and artificial intelligence (AI). Although well-known in society, innovation and discovery are often considered the same. Conversely, discovery is defined as the application of new or existing technical knowledge that has no value and is morally neutral.
Technological innovation is an effort to create new, better, and more effective technologies to solve societal problems. The development of better information technology is crucial to meeting the increasingly complex needs of society.
Definition of Blockchain Technology
A technology system responsible for cryptocurrencies, known as blockchain, regulates and manages transaction data related to cryptocurrencies such as digital currency or Bitcoin. Of course, as we want to trade in cash, third parties like banks oversee and supervise the transactions we make.
However, banks differ from blockchain technology because their transactions are open and free as blockchain users regulate all transactions. As its name suggests, this blockchain transaction technology system is called “user-to-user.”
The blockchain consists of sequential blocks distributed to users; each block is distributed to a ledger and must contain a hash, the block’s previous data element, and other elements.
Brief History of Blockchain
Initially, blockchain was created to meet the large demand for a system that is more efficient, effective, cost-saving, secure, and can record many financial transactions in the future.
The use of blockchain itself first appeared in 1991. At that time, Stuart Haber and W. Scott Stornetta were two people who wrote and published the Journal of Cryptography: How to Time Stamp a Digital Document.
Blockchain development began around 2009, and was first used for bitcoin. A Japanese person named Satoshi Nakamoto is the creator of blockchain technology. The existence of bitcoin is somewhat different from money created by central banks, which still take the form of traditional money. Bitcoin has no central power or authority, and no one works to control it.
Bitcoin is better activated through a peer-to-peer network than relying entirely on central authority to oversee, obtain verification, approve transaction requests, and process income.
The Importance of Blockchain Technology
In recording financial transactions, there are several problems caused by traditional database technology. One example is property sales. Property is transferred to the buyer after payment is completed.
Both the seller and the buyer have the ability to record monetary transactions privately, but there is no reliable source. Although they have received money, the seller can easily claim that they have not received it, and the buyer can also argue that they have paid money even though they haven’t.
A trusted third party must oversee and validate transactions to prevent legal issues. Transactions become more difficult because of this central authority. There are also weaknesses. Both parties will be harmed if the central database is infiltrated.
By creating a decentralized and tamper-proof system for recording transactions, blockchain addresses this issue. Both the buyer and the seller have their own ledger created by the blockchain in the property transaction scenario.
All transactions must be approved by both parties and automatically updated in both ledgers in real-time. The entire ledger will be corrupted if there is a change in historical events. Various industries have used blockchain protocols, including the creation of digital currencies like Bitcoin.
How Blockchain Works
- Simply put, the blockchain system consists of two types of data: blocks and transaction yaks. Each block will contain cryptographic hashes, forming a network.
- Cryptographic hashes take data from the initial block and transform it into a compact string. The string serves as a reminder of potential sabotage.
- This technology can be installed on any computer with special software, but it does not have full control.
- People known as bitcoin miners use specialized computers to perform mathematical calculations to unlock new block gaps in the blockchain. New hash values will be calculated using previous cryptographic hashes.
- Furthermore, when there is a transaction between an online store offering Bitcoin wallets and a buyer, the transaction is sent to bitcoin miners.
- A new block will be created and used to store bitcoins in the transaction.
9 Advantages of Blockchain Technology
Every new technological development certainly has certain advantages. In terms of blockchain technology, there are many benefits that can be enjoyed by its users.
Among them are:
1. Transparent Transaction System
This technology allows for secure and transparent transaction information storage. When making a transaction, everyone can see it without having to log in. This is clearly very different from common banking practices.
2. Efficient
Transactions through blockchain technology are faster, more efficient, and of course, secure. Transactions through conventional currencies require a lot of time and human error.
3. Good Data Protection
Before being executed on many computers, miners use a verification system. The database structure cannot use edit commands and can only add. Therefore, hackers cannot hack or use social engineering to change the data within it.
4. Better Audit System
The ability to audit is a hallmark of blockchain technology. Every individual has the ability to view and track transaction data, allowing them to know the audit trail of assets. Because transaction data is public and cannot be changed, corruption and fund embezzlement are no longer possible.
5. Guaranteed Security
The encryption advantages of blockchain with cryptography make transaction security not an issue. By using cryptography, transaction history cannot be changed as it is already encrypted, thus reducing the possibility of fraud.
6. Features of Blockchain Technology
The main features of blockchain technology are as follows:
7. Immutability
The term “immutable” refers to something that cannot be changed or exchanged. Once recorded in the shared ledger, no participant can change that transaction. If there is an error in the transaction record, you must add a new transaction to correct that error. Thus, both transactions can be viewed by the network.
8. Decentralization
In blockchain, decentralization means that centralized entities (individuals, organizations, or groups) can control transfer and decision-making to a distributed network. Transparency
is used by decentralized blockchain networks to reduce the need for participants to trust each other. Furthermore, this network prevents participants from using authority or control over each other, which can disrupt network operations.
9. Consensus
The term “consensus” refers to the general agreement among participants. This is achieved through the consensus mechanism, where participants agree on the validity of transactions before they are added to the blockchain.
Various consensus mechanisms are used in different blockchain networks, such as Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS).
