The blockchain is a revolutionary technology at the heart of most cryptocurrencies, including the oldest and the largest one – Bitcoin. It functions as a digital, free access register that stores all information about users’ actions inside the network in a transparent and safe manner. This supports decentralization and independence of the financial environment that uses blockchain.
However, the performance capabilities of blockchain may go far beyond cryptocurrency. A great number of industries, including healthcare, business, government and other industries are looking forward to operationalize blockchain and therefore improve the way traditional systems are functioning. Today, the most progressive organizations are already using blockchain to achieve a higher level of transparency, security, efficiency, traceability, and speed of operations with minimal expense.
In a word, blockchain technology could be even more promising than cryptocurrency, despite the fact that it was initially created to support digital money. Even if BTC will lose public interest in future (however, it is very unlikely), blockchain is powerful enough to literally change the world. Let’s discuss how exactly industries may benefit from implementing blockchain.
The model of contractual transactions is time-consuming. In addition, it lacks transparency, because contracts require the third party undertaking oftentimes. Smart contracts allow automatic validation and accomplishment due to the blockchain technology. They execute operations with the help of a cryptographic code. Smart contracts are programs that work in accordance with a specific set of terms incorporated by their creators and check if all the conditions of a deal were maintained. If everything is correct, smart contract confirms the deal automatically. This excludes the need of any third parties and therefore saves company’s time, money, and confidentiality.
In case a dismissal is found somewhere in a supply chain, blockchain is able to trace the entire way to the original point. Therefore, services/businesses can make a research and take the necessary steps, correcting mistakes faster and easier.
This technology can be incredibly helpful in a food segment, where exposing fallacies and fixing them is a question of safety and quality.
When all transactions are recorded in a virtual blockchain, the danger of human error is eliminated, including data tempering and failures due to negligence. Records are automatically checked when passed from one block to another, therefore mistakes become almost impossible. This way, the system guarantees accuracy and allows a highly traceable audit.
In a word, blockchain may lead the accounting process to a new level, providing an opportunity to keep all important records in a single register instead of supporting a number of separate records. Also, this ensures company’s information integrity.
Any business is looking for ways to reduce costs. Despite the fact that PayPal and other global financial systems allow international and cross-system exchange, they still require high fees for operations. Instead, blockchain allows transactions made at a minimal charge. Also, it replaces any third parties or middle-men, who monitor the operations and guarantees the fairness of a deal. With this technology, it doesn’t matter if you trust the second part of the deal because any fraud is excluded. You trust an algorithm and the data in a blockchain. Also, you won’t have to check tons of documents to make a deal, because every participant will have an access to a single, approved and immutable version.
Therefore, blockchain can hardly be overestimated. This technology can easily solve a lot of crucial issues and improve the way industries function. This is a perfect solution to the problems connected with transparency, high fees, speed, quality and other aspects faced by most organizations, both financial and social.