The rapid advancement of technology is not going to slow down anytime soon. Technology is responsible for the growth of the Internet, social media, and other applications. In 2009, the launch of Bitcoin pushed blockchain from concept to real-world use. Since then, different organizations have been working to make use of blockchain in their business.
Using blockchain in a business has many benefits, as it improves existing processes and helps create new business models. Technology also gave rise to cybercrime as many things, such as net fraud, double spending, high transaction fees, retrieving lost data, etc., seemed impossible in the past but have now come into existence. Organizations must utilize a robust technology, i.e., Blockchain Technology, that protects them from these problems.
What is Blockchain Technology?
It is a technology that allows computers in different locations to collect updated information permanently while synchronizing all the copies. It is an open ledger that several companies or individuals can access at once. Blockchain first started to store and secure digital data.
Blockchain technology records data chronologically, and no one can change it once it is recorded. It is a secure and decentralized system meaning no intermediary fee is required. It provides secure transactions, speeds up data transfer processing, and reduces compliance costs.
Top 5 reasons why blockchain is a promising technology
1. Improved Data Security and Digital Identity
Data breaches always happen, and many organizations face significant losses. Hackers can easily hack into an organization with weak security and get their hands on their customer's confidential information, such as credit card numbers, birth dates, addresses, passwords of various profiles, locations, activity, and more. Businesses need improved security against cyber hackers.
Blockchain technology hardens network security as it creates an unalterable record of transactions with end-to-end encryptions, making it difficult for hackers to perform an unauthorized activity and fraud others. Blockchain can be used in various industries to store confidential data on the network, allowing organizations to access the data instantly when needed. Moreover, blockchain offers a better solution to privacy concerns as it can anonymize the data and limit access to data by the need for permission.
2. It Builds Trust
Building trust between different entities is difficult since both businesses become vulnerable to data breaches. When two organizations are willing to engage in a business that involves sharing data and transactions, they choose a trustworthy mode. Bitcoin uses blockchain technology, an example of how blockchain can enable trust between unknown participants. Blockchain offers a decentralized structure, meaning no one has authority over the blockchain network. It helps companies build trust and share data within an ecosystem where no one exclusively is in charge. For instance, in supply chain management, multiple companies such as suppliers, transport, distributors, and consumers need information from each other in the chain to maintain the flow. Blockchain helps reduce the cost of financial services due to its decentralized nature, which increases efficiency and reduces the cost of processing transactions.
Many industries use traditional ways to store data on paper, which slows down the whole process. Also, storing information digitally for easy access increases the risk of data corruption. Blockchain can help reduce this redundancy and increase security. Blockchain technology involves tokenization, a process in which a network of computers converts the value of an asset into a digital token, which they record, and share via blockchain. A famous example of tokenization is digital art, which helps many artists to get the correct value for their products. It has more applications than in other organizations, such as the Banking sector; it can streamline the transaction process worldwide due to its tokenization feature.
4. Individual Control of Data
Nowadays, anyone can access any data without requiring permission from the owner. Blockchain protects the data while allowing the rightful owner to control their digital data using blockchain-enabled smart contracts. Smart contracts can help automate many processes such as hiring a new employee at an office.
Moreover, data in the blockchain is irrevocable, immutable, and cryptographically signed. Anyone can contribute to a blockchain and allow anyone to read from it. Everyone knows the originator or owner of all data, and no one can change the authenticity and source of all data.
5. Speed, Visibility, and Traceability
Blockchain can replace the manual processes in transactions, making the processes significantly faster. Generally, blockchain needs a second or less to complete a transaction process. However, many things, such as the size of blocks, network traffic, and more, affect the speed of processing transactions. But it is still a faster technology than others. Another thing, organizations need fast traceability and visibility. Blockchain can help trace the source of data or transactions in seconds. It helps organizations to confirm their transaction histories, respond to problems or questions, and keep the business smooth. According to experts, this technology can help track the origins of various things, such as medicines, to check if it's organic or counterfeit.
How will Blockchain Technology affect businesses?
Blockchain will create a trusted, uncensorable, unfilterable data repository that anyone worldwide can access. Experts believe this technology will drive the creation of the third generation of the Internet. Many industries will be using blockchain technology in the future. However, the top industries that will significantly benefit from this technology include the following:
The main challenge for any organization at present is a cyberattack. Many organizations were developing an effective solution to secure the data against tampering and unauthorized access. Blockchain can help with cyber security by quickly identifying malicious attacks thanks to its peer-to-peer connections. It eliminates the centralized system, meaning and offers a secure, quick, and transparent way of recording transactions. Blockchain technology uses cryptographic algorithms that verify and encrypt each piece of data stored on the network.
Generally, banks charge transfer fees, which can be costly for most people. Moreover, sending money overseas is more challenging as other factors, such as hidden costs and exchange rates, increase the cost of the money transfer. Nowadays, people choose financial services with low charges.
Blockchain can help the Banking sector by eliminating the need for an intermediary in money transfers and reducing the overall cost of the process. Many cryptocurrencies have already removed the requirement for third parties to perform transactions. Blockchain technology can help provide borderless and quick payments across the globe.
People often lie about these details, such as degree, skills, and work experience, on their resumes during recruitment. Moreover, data privacy of the candidates' or employees' information is also a big issue for organizations. A blockchain-based employee verification system can help improve recruitment and reduce the risk of bad hiring. The data on blockchain networks cannot be altered, which prevents candidates from changing their employment history. Blockchain can also help Human resources protect the sensitive data of the candidate due to its enhanced data security.
In times of emergency, a patient needs to collect their medical data from several hospitals, which can be time-consuming. However, providing patients' medical data to the public over the Internet also increases the risk of data corruption by hackers. Healthcare organizations need secure technology that protects the privacy of their patients. Blockchain is a perfect technology that resolves these problems by removing a central authority, making it easier for everyone to access data in a second. Blockchain makes it difficult for a hacker to corrupt the data since each block is linked to another and distributed across the computer node.
Supply Chain Management
The biggest problem supply chain management faces are lack of transparency, which reduces the overall efficiency of the operations. Blockchain can help the industry by facilitating traceability across the entire supply chain. It also helps remove a central authority, resulting in instant access to data by parties within the business ecosystem. The shipping organizations can use this technology to record product transactions in a decentralized distributed ledger, so anyone can verify the product's status and trace it back to its manufacturer.
Traditional voting systems have an unsolved problem of election manipulation. It is illegal to increase the vote share of a favored party by any means. Moreover, the traditional voting system is time-consuming as voters must wait a long time to cast their votes to a local authority.
Blockchain can address these issues by allowing voters to cast their votes without requiring them to disclose their identity in public. It is also impossible to change or erase the vote once it is added to the blockchain network.
The Bottom Line
Blockchain has become a popular term these days. Many believe that once companies utilize this technology worldwide, it will significantly impact the Internet and society. It is estimated that blockchain technology will likely affect the business process of these giant industries such as Real Estate, Insurance, Banking, Healthcare, and Supply Chain Management. Blockchain can also help in facilitating recruitment by reducing the need for human input. It is critical to decide whether blockchain will be the right technology for your business.
Blockchain can integrate with other technologies, such as Big Data, to make a comprehensive technology for an organization. If you wish to learn more about technology trends and blockchain technology or have any technical questions, contact Programsbuzz, as they provide acceptable solutions to any technical questions related to your business. Implement blockchain solutions to stay ahead in your industry.