Blockchain Technology, the technology which has taken the world by storm never cease to leave the developers surprised with its multifaceted approach. Although it started off as the heart of cryptocurrency transactions since 2009 till date, it has undergone a vast transformation. Many businesses are now adopting this technology or fining out ways in which Blockchain can prove helpful for them.
Whenever we talk about Blockchain, the first thing that strikes our mind is cryptocurrency. Yes, that’s true that most of the applications of Blockchain revolve around financial transactions, but it is more than that. Researchers are working on the use of this technology to streamline supply chain management, enhance data security, voting, syncing together medical information and bringing everything on the platform. The crux of the matter is that Blockchain has become the epicenter of technological transformation.
Many of you might be wondering, why are people so keen about Blockchain and why they want to adopt this system, but, before that, it’s important to understand, what is Blockchain and why it is important?
The Blockchain is the digital ledger where all the information is distributed. It’s a decentralized ledger, and all the information is spread across the network and not stored in a central repository. Also, once the information is entered in the ledger cannot be altered or changed. These features make Blockchain the technology of the future.
To gain a competitive edge in the market, it’s essential that you must make use of the latest technology. Since Blockchain is the most sought-after technology, let’s have a look what makes Blockchain so popular and why you must adopt this technology.
Transparency– One of the critical aspects of the success of any business is to make sure that there is transiency in its way of functioning. Transparency is the key feature of the Blockchain, and this is the reason that Blockchain is intriguing to businesses. Being open source, once the information is entered in the Blockchain, it makes it difficult for anyone to alter or change the Thus, you are assured that all the information present in the ledger is authentic and unaltered.
No third party– You can say that this is the significant benefit of the Blockchain, the functioning of Blockchain prohibits the presence of the third party which is a common trend in the current mode of operation. Irrespective of your business size and business type, if you are trading and are making payment, then there will be a third party involved which can be either bank, PayPal or other payment gateways. And you need to pay a significant amount of transaction fees in the form of processing fees. But, when it comes to the Blockchain, there is no third party. Thus, you can save the transaction fees amount.
Faster Transaction Settlements– When it comes to the current banking system that we are using, then you would agree that it takes days to complete the payment settlement. But, When you transact via Blockchain, it consumes lesser time as compared to the current payment system. Thus, you also save time and energy.
Decentralization– A part from the features mentioned above, decentralization is the key feature which makes Blockchain so popular. It allows the information to be distributed across the network which means there is no central repository of data; you can access it at any point and any time. Moreover, in case of any cyber-failure, you don’t have to worry about the loss of information since everything is distributed across the network. Technically speaking, Blockchain enables individual transactions through only proof of validity and authorization. The information on particular Blockchain is piecemealed in the entire system or nodes. Thus, you can access the information quickly.
Data Security– One of the key aspects of Blockchain is that it guarantees data security. Since the information present on the Blockchain ledger can only be accessed by the people in the network and one needs validation from the system. Thus, all the information on Blockchain is safe and secure.
It won’t be wrong to say that Blockchain appears to be a luring technology, but amidst all the hype about it, we cannot ignore the fact that it is still growing and many changes will come in it in the times to come. But, it is the technology of the future, and for the business to maintain their market share and gain an edge over their competitors it is crucial to adopt all the latest advancement and changes, and Blockchain is one of them.