Post the financial crisis in 2008, Blockchain emerged and provided its legitimacy to Bitcoin. The digital currency or cryptocurrency follows a peer-to-peer decentralized payment network with no central authoritative control. However, apart from the secured transactions, the blockchain technology also offers a plenty of benefits to businesses too. In fact, the technology works as a game changer for businesses, who understands this technology.
What is Blockchain?
The Blockchain is a public distributed electronic ledger that connects all miners through asset transfers and information related to the assets. The purpose of creating this technology was Bitcoin and to legitimate it as digital currency post the activities in the financial industry that resulted in financial cataclysm in the year 2008.
The technology records each and every transaction that are ever been made on the network through cryptographic digital keys. As each block is chained to another block through the algorithm, so there are zero chances of duplication and removal of transactions that have been held on the network globally. The lengthy the Blockchain is the wider the network. Simultaneously, the more the complexity of digital key, the more secure the Blockchain.
Blockchain is becoming a New Trading Platform
All kinds of trade require assets exchange in between one party and other unless it follows bartering system. However, in the exchange process, there is one-third party that provides the deal or trust in the trade.
In such a scenario, Blockchain changes the trading platform by removing the third party and bringing the two parties together in a reliable network by recording each transaction that has been ever made on the network securely and sequentially.
Many businesses can actually utilize the blockchain technology into the new trading platform and get benefited. There are numerous benefits of adopting this technology into business. The major six benefits are given below –
As in Blockchain technology, transactions are done directly in between the two parties without any involvement of the third party, so transactions take place quickly. In addition, the technology has the ability to manage smart contracts and commercial actions automatically. Therefore, this directly streamlines every process and remove the cost and time from the transaction. For more information about the same, you can read articles and blogs on reliable sites that how this technology is getting utilized in different industries.
On the blockchain network, each transaction detail is recorded subsequently and it provides an audibility for the asset in between two parties. It is especially beneficial for the businesses in which data source is needed in order to authenticate the assets. At present, the company Everledger realized the benefit of Blockchain technology and used it to track the diamonds.
In the blockchain, tracking goods in a supply chain is pretty easy and advantageous too. The information related to component can communicated to and from the new owner required for the possible action.
Transparency is one of the major benefits of blockchain to small, medium as well as large businesses. As lack of financial and commercial transparency might result in bad business relations and commerce delays. So, in order to provide transaction details against commercial construct, trust and transparency need to be maintained in the process for a stable relationship instead of negotiation.
On the blockchain technology, each transaction is recorded and verified in the network through complex cryptographic problems. The information authenticity is assured through complex mathematical algorithms. The benefits of IoT – Internet of Things is assured information of the keys. This has already been used in the Defense industry for IP protection and verification of instructions.
Another benefit to businesses of blockchain technology is feedback. As the technology has full traceability throughout the asset lifecycle, the manufacturers and designers of asset can easily track the assets and accommodate the asset management in products in order to make it more effective. Feedback allows information regarding installation, maintenance, shipping returns, and decommissioning.
The Bottom Line
While Blockchain has been designed to serve the digital currency; however, it can also help the businesses in serving their needs. Therefore, business owners should use this technology in their business and make a boom in the industry.