In earlier times we had ledger journals which consisted of the records of the various economic transactions or money lending entries. After that we started storing all the information on computers, now the latest thing that has evolved in the market is the Blockchain technology.
Blockchain technology consists of records called blocks, these blocks are connected to one another and are secured using cryptography. It can record transactions between the two parties and in a very efficient and permanent way. The modification in the data of the Blockchain cannot be done once the data is recorded, there is no way to alter the data in it.
Reason behind it being the latest innovative technology
The original use of the Blockchain was to use it in the transaction of the bitcoin currency and now it has spread to various other aspects of the market. In its early development years, the technology faced a lot of disapproval and censorship, but after looking into it deeply and giving it a thought it was decided that it was more secure and productive. It now has taken the place as the technology to store data in a digital way which is update and looked into from time to time. However, this technology blog will tell you all about the benefits of Blockchain and will tell you that how you can enhance your business using it.
Some of the benefits of Blockchain can be described as:
- Authentic: The information that is stored on the Blockchain cannot be given to control by a single person. So there are a very few chances of failure and the business transactions can rely on the technology and be assured of the safety of their data.
- Transparent: Blockchain is a type of distributed ledger. So, all the participants will have the same documentation instead of saving the individual copies. This will create transparency and everyone would be able to view the same data, and the updating or editing on the document can only be done if all the participants agree on it.
- Secure: All the transactions that are to be recorded must be first agreed upon, after approval the current transaction will be linked to the previous transaction. The information is not stored in a single server, rather it is stored on a network of computers which makes it difficult for the hackers and crackers to alter the data.
- Improved traceability: If the company deals in a complex supply product trading, than it could be very difficult to trace the product to its original destination, whereas if the data is stored in a Blockchain it could easily trace the origin of the product because of the interlinking property of the blocks to each other.
- Cost Effective: Cost reduction is the most important part of the business, with Blockchain it gets easier to reduce the middlemen and you can do without them too. You don’t have to trust the trading partner, instead just trust the data on the Blockchain. As everyone will have the access to the single document, so you won’t even have to worry about the reviewing of a lot of documentation.
