What Is Blockchain Technology And Benefits Attached To It?
Businesses can hardly survive without going online or having strong online presence. Sounds correct and obvious, right? However, if we had analysed this statement in 1999, we may be tagged arrogant and fanatic. With the advent of internet, there was a lot of hype around this technology and its impact on business in the years to come.
And now, the technology that attracts the interest of savvy entrepreneurs is blockchain. However, majority of people still do not have any clue about this technology. So here is a brief introduction for understanding the technology better.
What is Blockchain Technology?
Blockchain is a global, public and cryptographically secure ledger that automatically records and verifies huge chunks of digital transactions. It is a decentralized network that distributes the transaction data across the network. Computer technologies are mainly centralized while the blockchain has distributed ledger.
Distributed ledger is a key that shifts from centralization to decentralization and can be described as a ledger of any transactions that can be stored on different sites all over the network. Therefore, there is no centralized database.
Benefits of Blockchain
Transparency, data security, immutability, decentralization and disintermediation are few of the features that allow blockchain network participants for trusted transactions anytime, anywhere. These features can significantly reduce fee, eliminate third party risks and withstand malicious attacks, while reducing the clutter of operations.
Blockchain is one of the unique kinds of decentralized system in which data can be stored on multiple sites. In this system, no single authority approves the transactions. Even if one or more nodes fail, the database remains accessible.
Data Safety and Security
Experts can generously claim that blockchain is a safe and secure system because it consists of a series of blocks that stores data in Hash functions. This is the reason that data cannot be changed or over-written and remains secured. Financial services industry was one of the first to implement blockchain technology. Not just banks and financial institutions but non-financial sector such as healthcare, law enforcement agencies, energy management companies, digital companies, real estate sector, public and corporate governance sector, car leasing businesses, human resource management, education, supply chain management and retail companies have also implemented blockchain technology into their systems for faster transactions to make their business more efficient and keep data secure.
One of the best and key features of blockchain is immutability i.e. its ability to remain unchanged. Yes, you have heard it right. In blockchain technology, data cannot be changed. No duplication can occur, once the data is saved and recorded in the system. With the help of this technology, you can create undistorted records.
Let me emphasize, once the data has been recorded in the blockchain system, we cannot change it nor the system administrator has the right to alter it. Trust is the key factor that brings people (even strangers) together in this system and they sign contracts. It is the most important factor for financial transaction record.
If you are dealing with a slow, old, sluggish, and complicated system and have to compromise on data security – blockchain is a solution worth exploring and investing. You can find a number of experts out there to solve your issues.