Blockchain is made up of two words block and chain. Every block is linked with each other through cryptography in the blockchain. Each block possesses a hash of its previous block. The data in the block once entered cannot be changed or hampered. It is a kind of distributed ledger where transactions are recorded.
The blockchain is introduced by Satoshi Nakamoto in 2008 to make it as a ledger of the cryptocurrency bitcoin. The structure of blockchain is decentralized, distributed, and digital ledger. As per statista, There are a lot of companies using blockchain patent as a London-based company owned 81 active patent families on Oct 22, 2019.
As per stats, we can say that more and more companies are using blockchain in their business worldwide. In 2020, the total investment in blockchain solutions is estimated at 4.1 billion dollars according to sources. It is being said that investment in the blockchain will continue in the coming years.
Benefits of Blockchain
Blockchain is being incorporated in various sectors like cryptocurrencies, smart contracts, financial services, video games, energy trading, supply chain, healthcare, domain names, and mobile app development company in Kuwait. Given below are the points where we have discussed how blockchain becomes a super technology by defining its benefits:
- One of the purposes of business is to reduce costs. Blockchain technology helps the business to reduce costs by eliminating middlemen charges or any other third party.
- The data inserted in the blockchain is pure and uninterrupted. It is trustworthy data and anyone can review the data.
Better Speed & Efficiency
- We needed human interference to minimize transaction mistakes and for paperwork. Since blockchain comes into existence, The transactions can be done with greater efficiency without error and paperwork.
- The blockchain digital ledger record is accessible to every participant so settlement can be done at high speed. It enhances both the speed and efficiency of the business.
- Blockchain can help fight fake medicines if you are in pharmaceutical and supply chain. It shows the full cycle of product transportation from where it comes and where it stops.
- It contains a complete record of every product journey. It maintains the audit of the product and maintains the authenticity of the products. It helps to maintain the data of authentic products and error-free audits.
- Blockchain is one of the highest security systems in any other system. The transitions are fully agreed then record in the digital ledger. The transaction approval and encryption with the previous transaction are mandatory.
- The information does not store in a single server but the entire computer system. It helps the business to minimize the risk of being hacked. The data of financial industries are highly secured because of blockchain.
- The transactions recorded in the digital ledger are highly transparent. Every participant has access to every block. Everyone must be agreed before any update in the system.
- The entire network should be informed before the alteration of any transaction in the digital ledger. Everyone has permission to alter the data so it is highly transparent and the same for everyone.
Blockchain technology has changed the culture from paperwork to digital ledger. This technology has reduced the cost of several businesses by eliminating middlemen. It also helped in high transparency, speed and efficiency, high tracking, and high security. Technology has changed the operations part of various sectors of the economy. More importantly, the finance sector has become highly secured and trustworthy.
The blockchain has increased the trust of customers and maintain a long term relationship with the assets. It also reduced the risk of theft or hack because of its encryption system. This technology is taking the business to the next level. In this article, we discussed the main benefits of the blockchain that exist and helping several businesses. We hope this article is beneficial for you.