Top 6 Business Benefits of Blockchain TechnologyCategory: Blockchain Posted:Sep 11, 2018 By: Serena Josh
Nowadays, the blockchain technology is rapidly increasing. The exploration request for the keyword “blockchain” has expanded by 250% over a span of one year. The U.S. legislature had a public conversation for the most obvious application of blockchain, i.e., cryptocurrency. Most of the organizations have included this new technology in their business. So, let us discuss what blockchain is and the different benefits of using this technology in business.
Blockchain: A blockchain is defined as a secure distributed automated record, connecting several parties in a network of belief and truth, it also simplifies the transfer of properties and the related information to those properties. Initially, Bitcoin has developed a method which is legitimizing as honest electronic currency after the seismic occasions in the budgetary world that prompt the worldwide monetary emergency in 2008. This can be achieved by recording the digital transactions securely in a successive chain with the help of digital keys, which is a reliable technique confirmed by the network. The duplication, editing, and removal of a transaction are stopped using the continuous chains, holding on everybody’s computer in the network. The digital key would be more complicated if the blockchain is lengthier and the network is wider, and therefore the blockchain will be more secure.
In a blockchain, the ledger can be written with the new information, including the prior information. Keeping this information in blocks avoid editing, modification or alteration of data. This is achieved with the help of cryptography to associate the contents of a recently added block with each block before it, so that if there is any change to the contents of the previous block in the chain, then the data in all the subsequent blocks would be invalidated. The Blockchain are consensus-driven. In Blockchain numerous computers are associated with the network, which lessens an attacker’s capacity to add transactions to the network unkindly. If an operation is added to the Blockchain, it has to participate in solving a mathematical proof, sharing its results with all other computers on the network. If the solution is correct, then the computers or the other nodes connected to this network need to be agreed with the solution; therefore the term is called consensus.
The data is attached to the distributed ledger with the help of Blockchain which means that none of the entity can take the information control on the Blockchain. Since we depend on agreement by many objects, therefore we should not believe in a single entity. The logged transactions in the chain can be published publicly and verified. Anyone could view the content of the Blockchain and would be able to check the recorded event that took place.
In most of the occupation, it is needed to exchange the assets between two or more parties and unless the trade monitors the exchanging system, there is always at least one central third party. The third party provides belief in the trade and looking for their reward for their accepted role.
With the introduction of different parties together in a reliable network deprived of a third party and by recording each of the transactions successively and strongly, the blockchain modifies the trading platform.
Benefits of Blockchain Technology:
Earlier, before the beginning of the blockchain technology, there was no technique to secure and authorize the digital asset or confirm a transaction in a trustless public way. Let’s take an example, to obtain access to a program such as Microsoft Word, and it is required to use a software license. To implement the right to utilize the software, it should check an integrated server operated by the Microsoft. The Microsoft has a right to refuse the access to the software or can transfer the permissions to the other user. Microsoft is a reliable entity. When an untrusted party is introduced into the network, there will be more risk of unlawful activities in the particular system.
There are several business benefits of utilizing this new trading platform. Let us explore some of the benefits of this new technology:
1. Auditability: The blockchain delivers a permanent audit path for the life of an asset even between different parties because of each of the transaction is noted successively and indeterminately. This is specifically important if the source data is essential in proving an assets legitimacy. Presently, this advantage is being recognized by the company Everledger to track the diamonds.
2. Traceability: The blockchain technology provides the advantage of traceability and cost-effectiveness for supply chain management. With the help of Blockchain technology, it is easy to track the drive of belongings, their source, quantity, etc. This conveys the information associated with each of the components which can be communicated easily to or from the new owner for the particular action.
3. Efficient: The Blockchain is a useful technology. With the help of blockchain, the transaction can be developed swiftly because the transactions can take place directly between the appropriate parties without any mediator. In addition to this blockchain is capable of operating the smart contracts which activate the commercial activities automatically, according to the sustaining criteria placed in the contract. With the help of blockchain, the processes can be simplified intensely, and thus it saves the time and money of the company. Presently, the blockchain solutions such as credits deliver autonomous smart contracts which are combined with its private internal cryptocurrency. The businesses can incorporate the services without releasing an extreme amount of exclusive information to the third parties, by consolidating everything into a single platform.
4. Transparency: If there is no sufficient transparency in business, then it will result in a great interruption and a failure in relations in the business. Later on, registering the trust within the process by providing the specific details of each transaction in contradiction to the profitability paradigm. This gives a constant relationship based on transparency instead of negotiation.
5. Security: In blockchain technology, the legitimacy of the information can be guaranteed, because each transaction is confirmed within the network with the help of individually verified multifaceted cryptography. The guaranteed information act as one of the primary keys to revealing the advantages of the internet of things, i.e. IOT, which is a final round cyber autonomous process that associates the properties with the actions. Nowadays, a variety of this is currentltbeing utilized in the defense industry for verifying the instructions and IP protection.
As the blockchain is the most secure technology, it is now used in the stock exchange as well. Australia’s stock exchange is already moving towards a blockchain-powered system for their operations, which is created by the blockchain startup digital asset property.
6. Feedback: An asset can be easily traceable throughout its lifecycle, as the asset designers and producers can accommodate through-life asset management into their products so that they become more effective and reliable. This enables for information returning from shipping, installation, maintenance and retiring.
When a transaction is recorded via blockchain it removes the human error practically and thus guards the data against probable destruction. The records are examined every time when they are passed from one node to the next. The processes will also leave a highly noticeable audit trail to confirm the records correctness. The complete accounting procedure can become more effective and reliable on the basic level. Businesses can keep a single record like joint register, instead of maintaining distinct records. The truth of a company’s financial information can also be guaranteed.
Blockchain Technology is a consensus-driven, decentralized, protected by cryptography and can be easily made public. Due to all these features and several benefits, it is utilized in most of the businesses nowadays. The technology and supporting platform around the blockchain system will be going to develop. Therefore, the companies which hold the qualities like transaction-based, whose decentralization benefits the client, will achieve more advantages from this technology.