What is blockchain?
The Bitcoin cryptocurrency phenomenon that has been blasted across news networks has many people wondering, what exactly a blockchain is? The term “blockchain technology” refers to a decentralized, often public, digital ledger. Blockchain relies on cryptography and hashing techniques to create a secure, immutable “chain of blocks” that records all the transactions related to a business network.
How can this technology help your business? There is a reason large corporations, like FedEx and Walmart, have jumped on the blockchain bandwagon. According to TechJury, 90% of European and North American banks were exploring blockchain in 2018. Businesses across the globe are interested in reaping the benefits of this systemized process and are looking forward to the future of blockchain technology.
What problems can blockchain solve?
All industries require tracking of assets, some more highly regulated than others. Keeping track of assets can be a complex and challenging process. It involves multiple entities that do not always share data freely. Therefore, each entity within the network maintains its own records, which can be subject to cyber-attacks. And, consolidating information across entities requires time and third-party validation, opening the network up to errors and disputes.
Blockchain technology provides transparency into business processes, while maintaining the privacy and security that is critical when involving multiple entities. Blockchain can improve trust inside and outside your organization, ensure all data is secure, and guarantee that every transaction is linked with the appropriate entity. All entities involved are authenticated and authorized to perform actions or see the data. The solution is both private and difficult to breach.
Features and benefits of blockchain:
- Provides a single source of trust by establishing a shared ledger where all participants can update and verify data
- Creates a decentralized network, meaning there is no central authority handling all information
- Every modification to the ledger is a consensus of all the parties involved
- Saves time due to a near real-time synchronization of the ledger
- Saves money by reducing or entirely eliminating the need of third-party entities who solely are used for validating transactions and resolving disputes.
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