Have you ever imagined a scenario where there would be no need for receipts, bank documents, registering or disposal of the property for any transaction? In order to bring up the same, we are having one of the latest technologies near to us named Blockchain Technology. Basically, it is associated with cryptocurrencies like bitcoin, ripples and other ones.
We know that purchasing and selling of any product or property are put in a record. So, as far as the commercial decision is concerned we always want all the information should be available in one place. This can only be possible if a technology of code writing in financial system circles all over the world, and this developed the root of most leading entities termed as blockchain technology.
Blockchain technology is nothing more than a digital ledger where Ledger refers to the Microsoft Excel sheet file with the details of some of the transactions. And at the same time, if the following excel file is copied to hundreds of your friend’s computer to forming a network is known as a distributed ledger. Therefore, blockchain is an anonymous online ledger that follows the data structure to simplify the way of transaction where users can manipulate the ledger in a secure way without any third party involvement.
Advantages of Blockchain Technology
Here are some of the advantages which are making Blockchain technology a must needed factor for modern-day technology.
With the use of Blockchain Technology, transaction histories are becoming more transparent because it is a type of distributed ledger where all network participants share the same documentation as opposed to individual copies. If anyone wants to change a single transaction record then it would require the alteration of all subsequent records with the collusion of the entire network. Thus, we will have an exact, consistent and transparent data when it is pushed through paper heavy-processes.
Inching towards security purposes, Blockchain technology is far way secured than other record-keeping systems. It is so because of the fact that information is stored across the network of computers instead of using a single server, which makes it very difficult for hackers to compromise with transactional data.
If a company deals with those types of products that are traded through a complex supply chain, surely the company would be familiar that how hard it can be to trace the product back to its origin. But with the involvement of blockchain technology, anyone can end up with an audit trail that shows where an asset came from and every stop that it made on its journey. This historical transaction data is the most important feature of Blockchain Technology as it helps in verifying the authenticity of assets and frauds.
Efficiency of Blockchain Technology
With the help of traditional paper-heavy processes, trading can be a time-consuming action to perform that may prone to human errors and often require third-party mediation. But the transactions can be completed in a fast and more efficient way by the help of streamlining and automating processes. Record-keeping can be performed just by the help of a single digital ledger, so we don’t have to reconcile multiple ledgers and end up with fewer clutters. Thus with the help of this advanced technology, it becomes easier to trust each other without the need for intermediaries.
One of the main concerns for most the companies is to have a reduced cost with stable outcomes. With blockchain technology, one does not need any third parties or middlemen to make the guarantees because it doesn’t matter if you can trust your trading partner. Even one does not need to have so much documentation to fulfill the requirements of trade because everyone will have permission to access a single immutable version.
There are several positive sides of blockchain technology such as:
- It will allow smart devices to speak to each other in a better way.
- It will solve the problem of manipulation as it helps in bringing everyone to the highest degree of accountability.
- The online identity and reputation of our data will be decentralized.
- Cryptocurrencies will take the power from the government to have control over the value of the currency in handling or managing it.
- It will enable the middleman-free way to exchange the assets.
- It provides durability, reliability with a decentralized network.
There are lots of technologies such as blockchain, machine learning, etc which are emerging as a modern-day needs to keep up with the requirements and the competition around us. In this article, we have covered up most of the positive sides of blockchain technology which can end up in better results for our business. But, if you are still left with any concern or query, you can reach out to us at firstname.lastname@example.org. We will clarify all your doubts in the best possible way within no time as we are round the clock available to facilitate you.