Blockchain technology has evolved enormously since the introduction of Bitcoin in 2008, the first decentralized electronic cash system.
From medicine to finance, many sectors are looking for ways to integrate blockchain into their infrastructures.
Blockchain technology can generate new opportunities and benefit businesses through greater transparency, improved security, and easier traceability.
Most associate blockchain technology with the volatile nature of Bitcoin and other cryptocurrencies, large corporations are making massive investments to apply the technology to their businesses.
But Blockchain solutions are not just limited to cryptocurrency exchange. The benefits that this technology can present to companies are numerous;
- Greater Transparency: "Distributed ledger" is a term that is often used when talking about blockchain. Blockchain is a type of distributed ledger, all participants in the network share the same documentation rather than individual copies.
This shared version can only be updated by consensus, which means that everyone must agree. Changing a single transaction record would require alteration of all subsequent records and collusion of the entire network.
In business and financial systems, this adds an unprecedented layer of accountability, holding every sector of the business accountable for acting with integrity toward the growth of the business, its community, and its customers.
- Better Security: Blockchain is much more secure than other record keeping systems because each new transaction is encrypted and linked to the previous transaction.
It also helps the fact that Blockchain is made up of a network of computers that come together to confirm a "block", this block is then added to a ledger, which forms a "chain". This immutable and incorruptible nature of blockchain makes it safe from counterfeit information and hacking.
In any industry where protecting sensitive data is crucial (financial services, government, healthcare), blockchain has the opportunity to truly change the way critical information is shared by helping prevent fraud and unauthorized activity.
- Increased Efficiency: Due to its decentralized nature, Blockchain eliminates the need for intermediaries in many processes for fields such as payments and real estate. Compared to traditional financial services, blockchain facilitates faster transactions by allowing cross-border transfers with a digital currency. Property management processes become more efficient with a unified system of property records and smart contracts that would automate tenant-owner agreements.
- Improved Traceability: Perhaps the second most common term used when describing blockchain is "immutable". This is the idea that general ledger records cannot be modified.
With the blockchain ledger, every time an exchange of goods is recorded on a blockchain, an audit trail is presented to trace where the goods came from. Not only can this help improve security and prevent fraud in exchange-related businesses, it can also help verify the authenticity of traded assets.
- Reduced costs: Most companies dedicate significant amounts of funds, time, and energy to building trust, transparency, security, and efficiency.
With blockchain, you don't need as many third parties or intermediaries to make guarantees. You just have to trust the blockchain data, you won't have to review so much documentation to complete an exchange because everyone will have authorized access to a single immutable version.
Blockchain has the potential for many use cases, applicable to a multitude of industries.
