By Arpit GautamBlockchain technology is being talked about by almost everyone – From Social Media Platforms tothe leaders of top-notch companies. But what is blockchain all about? What are the advantages that are prompting more people to invest in Blockchain? Read on to find out!
What is Blockchain Technology?
A blockchain is basically an electronic ledger of transactions which are:
- Duplicated
- Dispersed
across a gamut of computer systems. This makesit difficult/ impossible to alter or hack the system to gain access to data.
Advantages of Blockchain Technology
Excellent Security of Data
Blockchain technology leveragestrailblazing security components as compared toother record-keeping systems/platforms.
Blockchain technology makes use of the consensus method in which each transaction needs to be agreed upon by the subsequent blocks of data. In addition to that, every transaction undergoes:
- Encryption – Improved Security of the Transaction
- Linking – The transaction has a proper link to the old transaction. This is achieved by the hashing method.
One of the reasons for Blockchain’s improved security is the fact that each node (computer system) has a copy of all the transactions ever made on the network. So, if any person wants to make changes in the data/transaction, they won’t be able to do it as the other blocks will reject the request for changes. Blockchain networks are also immutable, meaning the data, once written, cannot be reverted in any way.
Enhanced Transparency
Maintaining transparency in business processes is a huge issue that needs to be addresses by organizations of various industries.
Companies have tried to implement robust rules & regulations that will increase the level of transparency among employees, managers & the entire leadership chain.
However, there is one thing that will stop any company from being 100% transparent – Centralization.
This is where Blockchain makes the difference!
With blockchain, an organization can opt for an entire decentralized network where there’s not any need for a centralized authority, improving the system’s transparency.
Cost Reductions
At the moment, companies invest a lot of capital to control/manage their current systems.
However, by using blockchain, organizations can bring down costs associated with 3rd party sellers. Since blockchain has no inherited centralized player, there’s absolutely no need to cover any vendor costs.
In addition to that, there is less interaction required in regards to validating a transaction, further eliminating the need to spend money or time to do basic stuff.
Excellent Speed & Efficiency
Another industrial benefit that blockchain attracts is enhanced efficiency and speed. Blockchain solves the problem of time-consuming procedures and leverages automation them to improve operational efficiencies. This also results in the elimination of human-made mistakes.
On the other hand,decentralized digital ledgers& the consensus methods ensure that everyone can trust the process. This results in blazing fast transactions, excellent security, transparency & efficiency.
Benefits of Blockchain Technology for Businesses
There are many benefits to utilizing blockchain technology as compared to other traditional technologies.
- Blockchain provides better data protection & a high degree of safety when it comes to your business processes.
- The hacking threats against your company will likewise be reduced to a greater extent.
- As blockchain supplies a decentralized platform, there’s absolutely no need to cover centralized things or intermediaries’ services.
- Enterprise blockchain technology empowers organizations to use unique levels of accessibility.
Importance of Blockchain Technology for Various Industries
Many industries are slowly realizing the importance & benefits of Blockchain technology. Here are a few industries that can leverage Blockchain technology to improve their business processes.
- Real Estate – Seamless property sales, Tokenization, Real-Time Accounting, Easy verification of investor & tenant identity.
- Energy – Reduced Costs, Promotes Environmental Sustainability & Improved Transparency.
- Trade Finance –Better Data Integrity, Market Reactivity, Cost Reductions & Streamlined Business Processes.
- Healthcare – Privacy of Patient Profiles, Easy Drug Traceability, Enhanced Clinical Trial & Proliferation of Electronic Health Records (EHRs).
- Government – Better Finance Management, Proper Identity Management & Fair Elections.
- Logistics – Seamless Vehicle to Vehicle Communication, Improved Freight tracking & Carrier Onboarding.
These are some prominent advantages & Benefits of Blockchain technology for business. ARSR holds expertise in Blockchain & provides Blockchain services like Consulting & Advisory, Innovation Lab, DLT Implementation & Integration services to various businesses.
