Blockchain technology has gained a lot of popularity due to bitcoin transactions but this technology can also be used beyond this application. It isn’t only needed to keep a record of the number of bitcoins exchanged but actually, it is an open ledger that isn’t really owned by anyone. It is a technology for recording all types of sensitive information.
Blockchain is a type of technology that links or holds together a list of various records. The blocks are linked together through cryptography. Each block connected to the other block has a certain cryptographic hashtag of the previous block for the transaction of data, and information.
In other words, blockchain technology is an open-source distributed-across-the-world contact ledger that can distribute the data or the record between two parties efficiently and in the most verifiable way.
Technology is managed and run by a peer-to-peer network that validates a new block over and over again. However, once given, the data or the block of data cannot be changed or altered without changing the subsequent blocks of data.
How Blockchain Can Make Your Business Better?
The global health chains, financial services, government, innovators and industries are exploring new ways to utilize the blockchain technology to transform and disrupt the business models abruptly.
By implementing the blockchain technology(1), many businessmen have already reported the blockchain technology benefits such as greater transparency, improved traceability, enhances security, reduced cost, verifiable speed, and reduced costs.
What Are the Benefits of Blockchain?
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Greater Transparency
The data and cash transactions are becoming easier through the blockchain technology. All the participants of the networks share the same documentation instead of individual copies.
Neither can the participants change the documentation neither amend it without changing the previous subsequent documentation blocks. Therefore, blockchain technology is more accurate, consistent and transparent when it is used in heavy processes.
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Decentralization
This is one of the greatest benefits of blockchain. It is a decentralized system. it isn’t controlled from a single source. It is an open-source system that cannot be traced by third parties and the government itself.
Most of the systems, including our internet are centralized. Meaning that all the transactions done on the internet are traceable and can be seen by the government and the third parties. Whereas, this is completely the opposite when you use the blockchain technology.
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Reduced Costs for Businesses
For most of the businesses in this world, reducing the cost is the main priority. With the blockchain technology, you don’t really need middlemen and outsiders to close the deals. By using blockchain technology, you are not trusting the person but rather the data in the blocks.
Moreover, you won’t even have to review the documentation again and again as everyone will be provided with a single version of the documentation which would be unchangeable.
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Voting Transparency
Voting from a cell phone using a tested and safe interface can prevent fake and fraud votes.
In the current news, electronic voting under the eye of government is being pursued and one such example is the test of blockchain technology in the electronic voting in Moscow.
Using blockchain technology will ultimately eradicate the chances of fraud in electronic voting. This is a huge achievement despite the fact that the electronic voting system is prevailing.
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Data Ownership
This is the key benefit of blockchain technology. Instead of being controlled from a single point, blockchain is widely spread. In blockchain technology, you own your data. It is impossible for any third party or a government party to control its own agenda and control your process. In short, blockchain is another name for a fair distribution system.
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Enhanced Security
In many ways, blockchain technology is much safer than other record-keeping systems. In blockchain technology, the transactions are based on trust and agreed upon even before they are recorded.
After that, when the transaction is done, it is linked to the previous transaction. Hence, connected to the previous block. The information is shared on a large network of computers instead of a single server. This makes it extremely hard for hackers to get to your information.
It leaves no compromise on your data protection. Saving the transactional data is very crucial for financial services and government bodies. Hence, blockchain technology can reduce electronic frauds and help people to do transactions safely over the internet.
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Increased Efficiency and Speed
When you stick to the traditional paper-based process, it becomes more time consuming and prone to human errors. Moreover, it might also require third party supervision. But that’s not the case with blockchain technology.
By streamlining your heavy processes through blockchain technology, the transactions can be carried out much more easily and efficiently. Since the documentation and single ledger is distributed with every individual, there will be much less clutter than usual.
Moreover, everyone would have the opportunity to access the same type of information. Hence, it would be easier for everyone to trust each other and people won’t require any intermediaries.
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Fraud Control
A system in which the data is kept in numerous places instead of one is immune to the attack of hackers. It’s really not easy for hackers to get access to the information and even if they get access, the information can easily be recovered.
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Quality Assurance
A Blockchain is basically an open-source software for data transactions. Hence, it has enhanced transparency. This assures that the transparency is developed for the community’s good. Instead of doing good to a single organization, it provides the same quality to each organization for efficient and consistent data transactions.
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Account Reconciliation
The validity and the realness of the accounts are checked and confirmed beforehand by the participants. Thus, they confirm their own identity through this too.
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Peer-To-Peer Global Transactions
The integration of blockchain technology and cryptocurrency has enabled fast, secure and cheap transfer of money across the globe. Peer-to-peer transactions are cheaper and do not have taxes imposed on them. That is why many businesses are opting for this option for international fund transfers.
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Instant Settlements
In blockchain technology, trust is important for carrying out money and data transactions but as soon as you’re involved, the settlements are instant. All you need is to trust the information that is being shared with you.
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Health Data Security
The benefits of blockchain in health care are huge as well. For instance, digital medical records of patients backed up by blockchain technology could easily be retrieved by every medical facility regardless of the facility’s location.
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Driving Supply Chain Visibility
The benefits of blockchain in supply chain management have amazed us in the past few years. The transformative technology offers more efficient and transparent mechanisms for managing the inventory and recording all the transactions.
Applications of Blockchain For Businesses
Here are various practical applications of blockchain for businesses:
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Blockchain for Banking
This technology has mostly influenced fintech. It has ultimately improved the speed of money transactions, enhanced security, and efficiency.
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Blockchain for Government
It is currently being used by the government to solve political issues. For instance, recording the votes.
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Blockchain for Healthcare
It is good when securing a large record of patients’ information. It can also be used for searching patient’s information.
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Blockchain in Education
It is used in education for simplifying a series of documentation provided to the students.
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Blockchain for Supply Chain Management
It has increased the cost-effectiveness and traceability in the supply chain management.
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Blockchain for Accounting
Reading the money transactions through blockchain technology reduces human error and prevents the data from being tampered.
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Blockchain for Smart Contracts
The technology in this field cuts out the necessity of mediators. Hence, saving time and money.
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Blockchain for Voting
It reduces the frauds involved in electronic voting systems.
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Blockchain in Stock Trading
Using blockchain for stock trading can increase security and commodity.
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Blockchain in Energy Sector
It provides sustainable energy solutions for the people worried about their hefty utility bills.
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Blockchain for International Money Transfer
There are no hidden charges if you are using blockchain technology for international money transfer.
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Blockchain for Creative Industries
It allows the creative industries to hold their precious records safely, away from hackers.
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Blockchain for E-Commerce
This involves easy and cheap money transactions without the payment of tax.
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Blockchain in Transportation and Logistics
It provides an efficient and immediate right solution for order authentication and order tracking.
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Blockchain in Cryptocurrency
Blockchain allows the safe transferal of cryptocurrency using real-world bank accounts.
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Blockchain in Real Estate
Dividing property into small fractions of ledgers can lead to proper property investments.
Final Thoughts
Blockchain has the potential to be used in many cases and in many industries. Its benefits are applicable to multiple industries and it might convert the system from disruptive to the mainstream.
Other Useful Resources:
Challenges for Blockchain Technology in Finance Sector
6 Most Popular Blockchain Platforms
Interview with Joel Comm on How Blockchain Will Impact Future of Technology
Video Interview with Justin Vu on Popularity of Blockchain Technology & Growth Marketing
