Blockchain is a public registry that stores transactions in a network and is replicated. So it is very secure and hard being tampered with. It is a new technology that can change the world. As a result, the benefits of blockchain technology seems to be endless.
Blockchain has the ability to transform our industry. It can increase our transparency, enhanced security, improved traceability, increased efficiency and speed of transactions, reduce costs and much more. We will show you the amazing benefits of Blockchain technology.
Hash functions secure every transaction. So each block contains the checksum of the previous block. As a result, every block is linked. This makes blockchain tamper-proof. So, if someone wants to change an already documented transaction, all checksums of the previous blocks would be incorrect.
So if someone wants to cheat, he needs to reverse every single hash function by randomly trying. And because nobody has that much computing power, it is impossible to hack the network.
Blockchain improves identification
Blockchain allows us to create a distributed platform on which we can store any reports about any person from any source. So this allows us to create a user-controlled identity. This will help facilitate trade or interaction by revealing the cryptographic proof that these details exist and are signed off on. These kinds of portable identity are in the physical and digital world. So that means you can trust the profile rating and therefore trade in a totally new way. This is one of the benefits of blockchain technology.
Blockchain improves traceability
Most companies have a really complex supply chain. So it is hard to trace an item back to its origin. Blockchain can record the exchange of goods. As a result, you get an audit trail that shows where an asset came from and every stop it made on its journey. This historical transaction data can help to verify your assets and prevent fraud. So with blockchain, you have the possibility to trace everything back, since all data are immutable stored and available for everyone.
Blockchain increases efficiency
When you want to transfer something, there is a lot of paperwork, human errors and third-party mediation. But with blockchain, we can transfer money way faster and more efficiently. Since you can use a digital ledger that includes all the information needed. As a result, everyone has access to the same information. So the process is faster and it becomes easier to trust each other without the need third parties.
Blockchain reduced costs
With blockchain, you don’t need third parties anymore. You don´t have to trust your trading partner anymore. Instead, you just have to trust the data on the blockchain. You also have less paperwork and can use the time for more useful stuff. This reduces your costs by a lot.
Blockchain increases transparency
The blockchain is able to lower the uncertainty. It can transform our economic systems in radical ways. We don’t have transparency in our transactions. Blockchain allows you to have a decentralized database that can not be changed. It is distributed all over the world. As a result, everyone has access to the network and can view the data whenever he wants.
“Benefits of Blockchain Technology” – Conclusion
So rather than all of our uncertainties slowing us down, we can actually benefit from that collective uncertainty. We can then use it to safely exchange more, safer and faster and more open.
This technology is in the beginning. We probably fail before we truly understand all of the use cases for our economy. But there are tons of people working on this to get these things going. But blockchain is not just an economic evolution. It is an innovation in computer science. Blockchain gives us the technological capability of creating a record of human, currency and information exchange in a totally new way. It does this by converting a lot of our uncertainties into certainties.
Do you like our article “Benefits of Blockchain Technology” and you would like to know more about Blockchain? Here are the limitations of blockchain technology!