Blockchain Technology – Quick Overview
What is Blockchain Technology?
Blockchain, at its most basic, is a shared, immutable ledger for recording transactions, tracking assets, and building trust. The Blockchain “database” (more like a system of records) is stored on hundreds and thousands of servers across the entire network on the internet. This method of recording information makes tampering with records almost impossible. Upon saving the data, the information is permanently set in stone. As a result, virtually anything of value can be tracked and traded on a blockchain network reducing risk and cutting costs.
BENEFITS
of BLOCKCHAIN Technology
The main benefit of Blockchain is its ability to build TRUST and TRANSPARENCY. Before the creation of Blockchain, a lack of trust existed in the digital space.
Blockchain has increased the security of data and its traceability as it is a shared ledger across the network. All these benefits create efficiency and reduce the cost to the business world.
Blockchain builds trust &
increases the bottom line.
Blockchain builds trust &
increases the bottom line.
Blockchain builds trust & increases the bottom line.
Blockchain is a shared and immutable ledger stored across all servers of the network. It is NOT stored on a single server in the network like it has been traditionally done. Fixing a mistaken transaction happens by creating a new record (a new “block in the chain“). The fixed record is then displayed along with the mistaken one, both showing their date and time stamps.
1
Enhanced Security
Blockchain technology changes how crucial data is viewed. Thorough encryption prevents unauthorized activity, fraud, and record alteration.
The anonymizing of personal data and use of permissions stops unauthorized access and halts privacy issues.
Finally, storing information across a network of computers rather than a single server eliminates data visibility and hacking.
2
Exceptional Transparency
In business, most organizations use a specialized database to track their operations. Blockchain provides complete transparency by recording all data identically in multiple locations; this is called a distributed ledger.
By using permissioned access in Blockchain, network participants can view the same information simultaneously. All transactions are time and date stamped and immutably recorded. The network members can view the entire history of a tamper-proof transaction, eliminating the possibility of fraud.
3
Immediate Traceability
Blockchain provides a trustworthy proof of status for every asset from its beginning to its current state by creating an unalterable accountability trail. This trail is vital for consumers who want to know the ethical history of products, services, or industries.
Because of the traceability of data in Blockchain Technology, industries can significantly improve their operations by identifying where weaknesses occur during their various transactions.
4
High Efficiency & Speed
Because of the potential for human error, traditional paper-heavy processes are time and labour consuming often requiring third-party mediation. Transactions can be completed more efficiently by streamlining them with Blockchain.
In Blockchain documentation can be stored along with transaction details which completely eliminates the need to exchange paper.
Because Blockchain is a distributed ledger, there is no need to reconcile multiple ledgers which makes settling disputes much faster.
5
Automation
Another useful benefit of Blockchain Technology is the “Smart Contracts,” automations which facilitate more efficient transactions.
These automations reduce the need for human intervention and dependence on third parties to verify if terms and conditions of a contract have been met. They automatically trigger the next steps in the transactional process.
A quick example of a Smart Contract: The Smart Contract triggers the call for an emergency repair company for a broken traffic light through a sensor that flags the issue. The City of San Francisco then automatically releases funds to pay the subcontracting company immediately after the workers fix the problem rather than delaying payment as a result of human verification.
How industries benefit from Blockchain
Let’s look at a few examples of the practical applications and benefits of using Blockchain in a few known industries.
