With the increasing utility of blockchain (distributed ledger), the impact of adopting the technology would easily extend to all industries. From supply chain to finance and human resources, there would be no facet of business that would go untouched.
However, there are a lot of misconceptions about blockchain; about what it is, how it works and how it would be beneficial in any setting other than cryptocurrency. The repressiveness of the novelty of the technology prevents business from capitalising on the potential for future growth.
How does Blockchain work?
Simply explained, the blockchain is an ingenious way of passing information from A to B in a fully automated and safe manner. Inorder to make a transaction, one party initiates the process by creating a block. The block is verified by thousands and thousands of computers in the chain, distributed around the net. Once verified, the block is added to a chain with a unique record with a unique history, onto the net. Since all of the blocks in the chain are connected to one another, corrupting a single record would mean curropting the entire chain in millions of instances. In a massively large chain this is virtually impossible.
Why do I need Blockchain in my Business?
Let’s discuss a few points on how blockchain can help revolutionize business operations.
- Data Resiliency:A key advantage of using Blockchain is that it is virtually infalsifiable.
- As mentioned earlier, blockchain data is stored on the net, on thousands of devices on a distributed network of nodes. This makes the system and the data highly resistant to technical failures or malicious cyber threats.
- Each node on the system is able to replicate and store a copy of the database; any single node going offline does not affect the availability or security of the network. In the case of private records, it can be secured by encrypting each individual data record or element with a blockchain member key.
- Traceability: Data is stored cryptographically in a blockchain. Once a block is confirmed into the chain, it is very unlikely to be reversed. In other words, once a data is registered into a blockchain, it is impossible to edit or remove it.
- This makes blockchain invaluable when in conjuction with data requiring frequent auditing; as every last information is tracked and permemantly made available on a distributed and public ledger. This in-turn allows for autonomous marketplaces a private “chain” of transactions can be made without need for reconciliation.
- Quicker Transactions:Transactions can be done much more efficiently and effectively without conflicting data, missing information, errors and paper based processes; making it happen in a matter of seconds compared to days or months.
- Trustless System:In any traditional system of transaction depending on more than two parties, one has to trust the other parties involved to conform to fairness and authenticity. Blockchain technology cancels out the need for intermediaries and third parties, as the distributed network verifies each of transactions itself, and makes infalsifiable records of it. This also reduces overall costs and transaction fees for the parties involved and ensures fair treatment for all.
Blockchain technology could make an immense asset for your business as it increases data accountability and security. It also manages to cut you a fair amount of costs as a lot of prior auditing and transaction fees are nullified. Reach out to us to learn more about the technology and how we can help your business adopt and use the right systems to improve your operations.