The financial technology inspired by Santoshi Nakamoto is a huge hit and is becoming a better alternative to a paper-based fiat. Innovators are exploring new ways to use blockchain technology to transform traditional business. Blockchain is a new technology that will lead to a better and safe market.
Many Industrialists have applied this technology and achieved significant benefits like better transparency, security, efficiency, etc. As a businessman, I do know there are countless advantages and it is a must use technology. Even as per the experts at Statista, the global blockchain market will hit 42.3 billion by 2021.
So, it is one of the hottest topics for every industry and I have listed some of the best advantages of blockchain development.
A financial transaction is the most important application of blockchain. Breach of personal data has become the fact of life in today’s digital world. As Industries are leading toward digitalization, it has become the necessity to protect critical information.
Blockchain is a more secure way than other record-keeping systems. As blockchain works on distributed systems, it is impossible to tamper the data.
If there are four friends named Ted, Tom, Jack, and John in a College. They all have 3 bitcoins. Each of them decided to transfer two bitcoins to John. Firstly, Ted sent two bitcoins to John. A record is created in the form of a block. The transaction details between them are permanently inscribed in this block. This record will also hold the number of bitcoins each of the friends own. Similarly, other friends will also transfer bitcoins and each transaction will be saved in different blocks.
These blocks are linked to each other as each of them takes the reference from the previous block about the number of bitcoins. This chain of record or block is called a ledger. This ledger is shared among all the friends which act as a public distributor ledger.
So, any changes made to any blocks will affect other blocks. Moreover, a hacker would not be able to alter the data in the blockchain because Each user has a copy of the ledger The data within the blocks are encrypted by complex algorithms.
Blockchain technology generates more transparent transaction histories. As per the above example, every participant has a ledger. That share ledger can only be updated through consensus which means that everyone should agree on it. So, if a hacker tries to tamper with any data, he will fail to do it as he will be required to alter data from every block.
If you change any data it generates a new hash key and the notification will be sent to other participants. So, this leads to transparency and hence blockchain works better than any record-keeping technology.
Hence, data on a blockchain is more accurate, consistent, and transparent as compared to the paper process. The best thing is that it can be even widely used in the public sector to avoid corruption.
Better Efficiency and Speed
Earlier most of the data was paper-based, due to which there used to be tampering and incorrect information due to human error. Other systems used to be hacked easily as they were concentrated systems. As blockchain has systematic data collection and is accessible to individuals who have permission, it has made accessing information faster.
ATZ carts is one of the world’s largest online marketplaces for global trade. A few years ago, we faced an issue where there was an increase in complaints numbers for the default products. It was a big concern as it has started affecting the market.
We were unable to track the problem and then we adopted blockchain technology. Each product information was encrypted on the box. When exchanges of goods are recorded on a blockchain, we get detailed information about the product like where it came from and every stop before delivering. This helps engineers to locate the default product location. Adopting this technology also leads to preventing fraudulent activities.
When the company uses blockchain technology, they don’t need a third party or a middleman to make guarantees. This saves money and you can trust blockchain as it has highly encrypted data. Also, you won’t have to review huge documentations to complete a trade as everyone will have access to a single, immutable version.
Businesses can be highly benefited by fast and affordable cloud storage provided by the blockchain. Without the need for a server farm, blockchain enables storage of data and digital assets and it commonly uses a private key. One can use other people’s hard drives to share data with the world. Every information is encrypted while the blockchain farmer leases hard drive space, while renter pays to use it.
These are a few important benefits of the blockchain. Blockchain is a new technology and can bring and ease business. There are countless benefits, and many more will be invented. It is important to be updated with the latest technology but more important to be aware of its benefits.
Thank you for reading!!