Blockchain features the ability to provide secure data sharing without placing the responsibility on one side to keep it protected. This is what modern business demands. Making it easier and faster to conduct transactions, simplifying processes, making financial institutions and government agencies reach for the technological innovation more and more eagerly.
Benefits that blockchain provides your business
We had already blogged about what is blockchain for business. Below, in turn, we will focus on the values that business gains from this technology.
One of the advantages most often mentioned when it comes to blockchain is its ability to build trust between parties. This feature comes in handy when there is no space for risk and building relationships is complicated. One could say that it is the driving force of the business. Makes sides want to engage in cooperation, enter into transactions or decide to share data without the need for an intermediary third party. The term trustless was created for exactly this need, and it means that the sides don’t have to give responsibility for the security of the interaction to an intermediary.
2. Decentralized structure
Keeping unknown transaction parties safe is just one of the benefits of blockchain. Data is not stored in one place but is distributed across many servers. This way, the breakdown of one of them does not block access to the information. The decentralized structure allows many companies to share data within a single ecosystem. This is important for the supply chain, for example. This way, multiple partners can easily access transaction data and can track every change, and at the same time, the blockchain takes responsibility for information exchange. Each computer on the network can participate in the verification of transactions and there is no need for a central solution.
3. Data privacy and security
Security is a part of this technology. To understand why you need to know how blockchain works. It is based on a distributed network, but it is also an open and public one, thiseliminates the risk of the data being stolen, because it is available to everyone, and anyone can also become a hub of this network. Therefore, whatever is created in the blockchain is transparent, any data change is visible and will be quickly noticed by users.
This brings us neatly to the next benefit of blockchain. Its immutability, thismeans that the history of records on the blockchain is not subject to change, although the value will shift. However, it will always be visable, and anyone who wants to trace the list of changes has the opportunity of doing so.
Transactions once saved on the blockchain can neither be removed nor modified. Each of them is time- and date-stamped, making it possible to track changes in real-time and giving full access to the history of the data, to allow auditing.
Another advantage of this revolutionary technology is the visibility and traceability of products. The Carrefour network of stores has been providing food passportization since 2017. This allows customers to easily get information about the origin of the product, harvest dates, and audits. Using this solution can help build a brands credibility., allows them to prove the history of their products, also makes it easier to respond to the current needs of the customer, and allows for smoother inventory management. With blockchain products certifications, organic orgin or simply why a product has been withdrawn from the store all of this provides more clarity for the business and the consumer.
It turns out that blockchain can handle a transaction in as little as a few seconds, although this of course depends on many factors such as the size of the data block. Streamlining processes, reducing risk, cutting down on the number of parties involved in a transaction – these capabilities of blockchain accelerate the achievement of set goals.
7. Cost reducing
Cost reduction is a natural consequence of eliminating middle parties when using blockchain technology in business. However, this is not the only savings it generates. Reducing manual work on tasks and simplifying the process of data aggregation and auditing are other opportunities for cost reduction in the financial industry, for example.
Is blockchain a real revolution?
The approach to blockchain is evolving surrounded by new solutions that are being developed on its basis. It works well and has the potential for almost revolutionary changes in cases where businesses may be difficult to trust and therefore security is crucial. Companies that have a need to increase their visibility and prove transparency can benefit from this technology.
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