There is rapid progress of Blockchain Technology today, and it seems that there is no slowing down anytime soon. Businesses constantly fight transaction problems like net fraud, double spending, and lost data, which all can be avoided with Blockchain Technology.
But first, what is blockchain technology?
Blockchain, sometimes referred to as Distributed Ledger Technology (DLT), is a specific database that collects and records a group of immutable information called blocks. DLTs allow data to be stored publically in a way that makes it difficult or impossible to change, hack, or cheat the system. It is essentially a digital ledger of stored and distributed transactions across computer systems on the blockchain. Each block in the chain contains several transactions. Every time a set of transactions is added, a record of that transaction is added to every participant’s ledger and that data becomes a new block in the chain.
For businesses, blockchain holds the promise of transactional transparency, the ability to create secure, real-time communication networks with partners around the globe to support everything from supply chains to payment networks to real estate deals and healthcare data sharing.
How Blockchain can benefit your business?
Greater transparency
Blockchain’s greatest characteristic is the fact that its transaction ledger for public addresses is open to viewing and since then transaction histories are becoming more transparent. Since the blockchain is a type of distributed ledger, all network participants share the same documentation as opposed to individual copies. That shared version can only be updated through consensus, which means everyone must agree on it. Thus, data on a blockchain is more accurate, consistent, and transparent.
Enhanced security
Due to the data at rest being encrypted, Blockchain is always secure where every after transactions are agreed upon and approved, and they will be encrypted and linked to the previous transaction. Additionally, since DLTs are distributed, information is stored across a network of computers instead of on a single server. This makes it very difficult for hackers to compromise the transaction data. In any industry where protecting sensitive data is crucial such as real estate, financial services, government, healthcare, the blockchain has an opportunity to really change how critical information is shared by helping to prevent fraud and unauthorized activity.
Increased efficiency and speed
With the blockchain, transactions are done instantly and transparently, as the ledger is updated automatically. By streamlining and automating these processes with blockchain, transactions can be completed faster and more efficiently.
Improved Traceability
When information is recorded on a blockchain, you will have an audit trail that shows where that information came from and every stop it made on its journey and the authenticity of a transaction is verified and confirmed by participants, thus allowing it to be easily traced and tracked.
Reduced costs
Since you won’t need a middleman in the blockchain, you will save tons of money. All you have to do is trust the data on the blockchain and you won’t need any third-party to make guarantees.
While blockchain technology development is still in the early days and businesses are still apprehensive about the integration, especially about investing large sums of funds into development for a technology that is still considered ‘disruptive’, it has already proved great potential in helping any industries gain benefits in transparency, security, and traceability. The most important benefit you can get in blockchain technology aside from eliminating the need for a middleman is that it quickly identifies malicious attacks due to peer-to-peer connections where data cannot be tampered with.
To know more about the blockchain and how it can power up your business, contact us and we’ll share with you its great benefits and stories of successful blockchain integration.
