You must have heard about crypto assets and the rise of digital assets due to Blockchain technology. This simple yet secure database model has won over industries due to decentralized nature of the technology. Learn about Blockchain and their imminent power over the world in this blog.
What is a Blockchain?
Blockchain is simply a shared, immutable ledger. You can record transactions and track assets through Blockchain technology. Anything of value, tangible or intangible can be recorded and traded through Blockchain technology thereby reducing the time, risks and costs considerably.
Blockchain technology stores information in groups which are known as Blocks. Blocks have limited storage capacity and when one block is full, it is linked to another one thereby creating a chain. This chain is immutable and information once entered cannot be manipulated without altering the whole chain. Hence blockchains are safe and hackproof.
Why is Blockchain Important?
We are living in information age. The faster we receive and process information the better it is. For businesses even seconds delay could sometime result in huge monetary losses. Blockchain is ideal for this information age as it can receive, verify and store information within seconds. It provides a transparent, secure and swift information that can only be accessed by permissioned member.
Blockchain has significantly changed financial sector. It has reduced the power of banks to control business transactions namely payments and loans. Blockchain brings transparency to business processes and build trust in the business too.
Blockchains imminent power over the world
Blockchain adoption over various industries has grown recently. Industries such as Logistics, Medicine and Manufacturing are experimenting with blockchain technology. This shows the imminent power over the world that Blockchains have.
Let us take a look at advantages of Blockchain Technology
- Accuracy – Transactions are verified by a network of nodes therefore data cannot be altered and it is always accurate.
- Economical – Blockchain eliminates third party or intermediary such as banks to conduct transactions. Therefore, reducing the costs.
- Efficiency – Traditional methods of data verification and transactions takes days. However, with Blockchain, this can be done within seconds. Businesses efficiency increases with Blockchain technology.
Adoption of Blockchains in Business
We have already seen how blockchains have transformed Banking & Finance Industry. There is a whole new Decentralized Finance (DeFi) industry. Blockchain is already behind the success of crypto assets. However, it has many more potential use cases beyond finance and crypto. Let us take a look at them.
Supply Chain Management – Blockchains makes real-time tracking of goods and supply easier. Logistics industry benefits hugely from transparent and reliable data system because of huge information flow and loss of shipments etc.
Healthcare – Healthcare information is mandatory in emergencies or for better information sharing between various sectors. Blockchain can provide better interoperability and better healthcare to patients through shared medical history.
Real Estate – Buying or selling a house is very difficult because of complex process and hurdles in verification of ownership etc. Blockchain makes it easier to verify ownership and reduce frauds by providing transparency too.
Government – Blockchain can be used in government offices for record keeping and other data management. Election Commission of India is working with IIT Madras to apply blockchain technology on remove voting. This technology can make elections more transparent.
These are some of the key industries where blockchain technology is already bringing change. There are many more businesses which are inventing ways to utilize blockchain technology to give the best services or products to their users. Blockchain is definitely a revolutionary technology and it has power to change the world.