Of the many technological advances of the past few decades, Blockchain technology is one of the few that have the most potential to revolutionise businesses across all industries.
And while everyone has heard and read about Blockchain, not many understand the concept clearly.
What Is Blockchain Technology?
In simple terms, Blockchain is a distributed database within a business network that enables the secure sharing of data. This method of recording transactional information in a “ledger” makes it nearly impossible for the system to be hacked or modified.
While Blockchain technology is most commonly associated with cryptocurrencies, it has many use cases beyond Bitcoin. Based on their requirements, businesses can utilise different types of Blockchains from the following:
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Public Blockchains – These are open, decentralized networks of computers accessible to anyone who wants to request or validate a transaction.
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Private Blockchains – These are centralised, closed networks that require permission from the administrator to access.
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Consortiums – Also called Hybrid Blockchains, these are made of a combination of public and private blockchains.
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Sidechains - These blockchains run parallel to the main chains and offer better scalability by allowing the movement of digital assets between two different blockchains.
Benefits of Blockchain Technology For Businesses
Blockchain has immense potential to transform the way businesses function and manage their transactional data. Although it is not frequently used in all industries just yet, the time when Blockchain becomes an integral part of all businesses is not too far away.
There are several benefits of Blockchain for businesses, which make it the hot, must-have technology that must be invested in. Below we discuss some of the main benefits of Blockchain for businesses and why they should integrate it:
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Enhanced Security
The record of transactions in Blockchain is unalterable, with end-to-end encryption, preventing the risk of fraud and malicious, unauthorised activity. Blockchain data is also difficult to hack as it is stored across a network of computers instead of conventional servers. Moreover, Blockchain requires permission from administrators to access, limiting the risk of security breaches.
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Cost Saving
Blockchain technology can help businesses save money on vendors and third parties that help with processing transactions by doing most of the work itself. It also reduces the reliance on manual reporting and auditing processes and aggregation and amendment of data.
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Better Traceability and Inventory Management
Blockchain has a unique ability to trace a product or service from the recorded information in the ledger. This allows businesses to better manage their inventory and identify products that may need removing or re-stocking.
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Better Control and Immutability
Data once entered and recorded in a Blockchain cannot be altered in any way. This ensures easy and secure data tracking as there is no scope for modification of any information at any point. It also makes audit processing quick and more efficient. Furthermore, Blockchain gives users complete control over their digital data, how and who they want to share it with, and for how long.
Although businesses from all sectors can adopt and make the most of Blockchain technology, some industries can benefit more than others. These include banking and finance, energy, healthcare, non-profits, government and public sector, real estate, supply chain, and retail, to name a few.
Technology is changing the way we do business, and companies must keep up by adopting new technology like Blockchain to enjoy its many benefits and gain a competitive edge.
To find out more about other such technologies and how they can help your business, visit Biztech, the official business and technology forum of Milton Keynes.
