One of the world’s dynamic digital innovations is in the form of Blockchain Technology. Catering to the issue of trust within its network, it’s a digital ledger wherein the transactions are distributed and duplicated within the network called Blockchain.
All the transactions made and recorded within its system are in ‘Blocks’ and are time stamped. Each transaction has its own unique code, which makes it easily identifiable and added to Blockchain.
Blockchain provides a strong ledger system for the business, to keep their financial transactions hassle-free, safe and secured.
It comprises some of the unique properties such as:
- All transactions made are recorded within its system and are encrypted individually.
- The transactions are recorded in blocks and time-stamped.
- Blockchains are programmable
- It is decentralized and acts as an open ledger
- It removes the role of intermediaries and the transactions take place only between the sender and the receiver, thus providing a peer-to-peer network.
How does Blockchain technology help?
Owing to its unique features, some of the most significant benefits of Blockchain technology that directly affect the business growth are:
Better transparency and accurate traceability - Blockchain works on a network that is decentralized with no needs. It is a platform wherein anyone can join it and view the information within the network.
However, because of the powerful control mechanism, cryptography and its associated encryptions, the data stored in the network cannot be changed or deleted. All the changes made in the network are time-stamped and recorded permanently. The data stored is easily auditable, thus each transaction made within blockchain technology is transparent and accountable.
Enhanced security - Blockchain uses advanced security, and each transaction recorded on its platform needs to be validated through the consensus method. They used a unique hashing method to link all encrypted transactions made. They primarily used cryptography for providing security in a blockchain network.
Each user on the blockchain network has private keys which work as digital signatures, this ensures that they will easily capture any changes done in the records. We can see the security given by blockchain technology in database management in the healthcare sector and in supply chain management.
Improved accessibility, efficiency and reduced costs - Blockchain technology provides a network wherein business can make transactions in a decentralized network. All the transactions constantly updated and accessible with increased security. This safeguards business against frauds and data or information tampering.
It eliminates all time-consuming activities and human errors through its automated system of storing accurate data. It also eliminates any third party interventions as vendors because of its decentralized system, hence saving additional vendor costs. Businesses can process faster payments, thus saving time and removing errors.
Blockchain technology brings enormous benefits for the business to prosper and grow. It is about time that businesses scale up their growth strategy in partnership with this technological innovation. Its implementation definitely improves the supply chain mechanism, streamlines business accounting, evades any cases of frauds and finally stores data securely. All this enhances customer experience and maintains customer privacy.