If you are in the world of bitcoins and its investment, then you must have come across the technology which is behind it, that is, blockchain technology. Many people are not actually familiar with this technology and how this technology can actually help in building a great platform and helps in investment as well. So in this article, we will discuss what this is and what are the advantages of this technology if implied in a business?
What is blockchain?
The Blockchain is an encrypted, distributed database which records data. It is also called a digital ledger of any transactions, contracts which might need to be independently recorded. If we talk about one of the great features of the blockchain, then, its digital ledger is accessible across several hundreds and thousands of computers and it is not bounded to be kept in a single place. Many innovators are using this technology for exploring the global supply chains, financial services, healthcare, government, and many other industries. It is helping them to transform traditional business models. Going to the benefits which this technology is providing to the business, below are some points:
Blockchain technology provides more transparency in any transaction. This is one of the most intriguing factors as this technology is almost always open source. They share the same document and it can only be updated through consensus that means everyone who is sharing the data must agree on it. This increases the accuracy of the data and more transparency to the system. There are so many eyes on the data that one will try to alter them according to their wish and without the consent of everyone. Blockchain service providers ensure the same.
- Safe and secure
Among all other record-keeping systems, blockchain can be regarded as one of the safest modes as everyone has to be agreed on before recording a data. In this technology, the data is stored across a network of computers instead of a single server. This makes it difficult for hackers to compromise on one system. In some systems like financial services, government, healthcare where the data is very sensitive, the blockchain can actually be an alternative to prevent any fraud and unauthorized activity.
- Faster and efficient processes
The streamlining and automating of the transaction processes with blockchain, one can make the process faster and efficient as well. As in this system, the record-keeping is done in a single digital ledger which is shared among participants. The organization will not have to do it in multiple ledgers which will save time. Also, the parties will have access to it, which will reduce the error in the transaction. They will be keeping records. In this way, blockchain will help to have the processes faster and also efficient.
- Reduced costs
In any business cost, cutting is one of the priorities and with blockchains, they do not need the third party involvement. Thus they can save a good amount of money using blockchains.
So, there is an increment in blockchain companies in India seeing all these advantages.