As the world advances through the Covid-19 pandemic after suffering many setbacks, we see the growing adoption of technology to make things work with as much efficiency as possible in the post-pandemic world.
It is a fact that without the technological advancements that we have achieved, the concept of remote working, online grocery shopping, online banking, conducting entire businesses online would have not been possible. One such technology that is revolutionizing the world at present is that of Blockchain.
Ever since its inception in 2009, Blockchain has shown the phenomenal possibilities of its potential. Companies and organizations around the globe are now trying to adopt the technology to enhance their operations. The Blockchain platform not only helps to improve the processes that are already existing but also to bring about entirely new business models.
Blockchain enables faster sharing of data in an extremely secure way and also processes transactions among entities without anyone having to centrally control or safeguard any part of the process. Be it a public network or a private/permissioned network, Blockchain development offers multiple benefits for businesses.
The following is a list of benefits of using Blockchain, as identified by Industry experts:
Blockchain has the ability to create complete trust amidst participating entities, even in places where the possibility of doing so seems like a remote concept. Consequently, business deals involving sharing of information or transactions can be carried out at ease, which otherwise would require the aid of an intermediary.
The level of trust that Blockchain creates with its immutable system is cited as its most important benefit. Early use cases have shown how entities who were strangers could conduct transactions with each other without any hassle. Bitcoin and other such cryptocurrencies enable us to perform these very actions.
One of the most important benefits of Blockchain is that there is no central authority that controls the information dissemination, data security, or the transactions that are carried out on the blockchain. It allows data to be shared in a business ecosystem where no single entity is in charge exclusively.
In large businesses like supply chain management, a humongous amount of information needs to be disseminated between the different chains working in the entire system, ranging from suppliers, distributors, logistics, retailers, and so on. Generally, there is no one in charge of doing that efficiently. Blockchain will be able to provide a solution in such cases.
Security and Privacy
The level of security and privacy provided by Blockchain technology is unparalleled and is also one of the most important of its features. This factor stems from the very way in which a blockchain operates. A blockchain basically creates immutable records of a transaction on every block in the chain across the entire network of systems and secures them with end-to-end encryption.
However, if someone decides to hack a block and access the records of a transaction or even wishes to manipulate data, the perpetrator will have to hack every single block and change the data individually on them.
Now, this is virtually impossible to carry out and hence the blockchain technology can prevent scams or frauds pretty easily. Blockchains can maintain data anonymity and with features like requesting permissions to limit access, they actually address privacy concerns a lot better than traditional computing systems.
The nature of Blockchain is such that it can allow companies to cut costs across and save money. Apart from processing transactions in the most efficient ways, it can reduce tasks that need to be done manually, such as, aggregating data and amend it from time to time. Moreover, companies require employees who do manual reporting and even auditing.
Experts state that the ability of blockchain to ease the processes of clearing and settlement only goes on to prove how cost-effective it actually is. Blockchain can easily replace middlemen, vendors, and other third-party contractors who took care of the processing previously.
Blockchain can process transactions much faster than conventional methods. This is because it eliminates the necessity for intermediaries and other manual processes required in transactions. It has been known that Blockchains can process transactions in a second or less.
It is dependent on factors like the size of the block or the traffic accumulated on the network. However, according to experts, Blockchain is faster than any other available technology or process currently.
Visible and Traceable
Blockchain also has the ability to trace the origin and the state of a particular transaction or a product. This helps companies manage their inventories more efficiently. Recently Walmart used the Blockchain system to locate the origin of sliced mangoes.
So it is not only about speed but also about the ability to locate the source of any products. This can be leveraged by companies to sort out products, figure out their condition and act accordingly, without undergoing any hassle.
Individual data control
Blockchain ensures complete control over your data while also protecting it. Organizations and individuals using blockchain will have complete liberty of choosing what to share and what not to share of their digital data. Blockchains use smart contracts that enforce limits regarding this issue.
Tokenizing is a process through which the value of an asset is turned into a token, which is then recorded and shared through the blockchain.
This aspect of a blockchain has had huge implications in the world of digital art and related domains. People are building Non Fungible Tokens (NFTS) to sell their digital art to fans and collectors. Apart from the art and fashion world, experts believe it can also be used in trading carbon emission allowances and other such domains.
Blockchain uses time-stamping and date-stamping while storing a piece of information. Thus the information stored cannot be changed, duplicated, or manipulated by any means.
This is known as immutability. Auditing information in a secured and reliable manner can be done easily with the help of this technology.
Chances for innovation
Blockchain technology is being constantly developed as with every passing day, new additions are being made in terms of technical innovations. Companies and organizations are looking to replace labor-intensive manual tasks like verifying resumes with the use of Blockchain technology.
People fake information on resumes and it becomes a challenge for companies to verify them. Experts are working to solve this problem so that blockchain will enable them to find out the truth accurately and do so much faster.
Even though experts believe that Blockchain is a revolutionary technology, its adoption is not easy in many parts of the world. For that to happen, we need to wait another ten-fifteen years probably. But according to the experts, this is indeed a revolutionary technology that is also not a short-term one. Blockchain is here to stay as it unfolds in the years to come.