5 Ways Blockchain Is Changing Business

The blockchain technology is capable of completely revolutionizing the way businesses work. Similar to a stock ledger, a blockchain is an electronically distributed ledger. In simpler words, it is a list of entries made and maintained by several participants through electronic means. A blockchain is made of blocks linked using cryptography. Every block holds within itself a mathematic algorithm that connects it to the previous block, transactional data, and a time stamp. The blockchain technology is capable of revolutionizing every sphere of life as it is impossible to modify any data or information stored inside a blockchain.

This article sheds light on how this technology is already changing the face of many businesses.

 

5 Ways Blockchain Is Changing Business

It Helps Protect Intellectual Property

In recent years, with big companies, such as Yahoo and Target, facing data breaches, the need to ensure security and block the public distribution of private information has become critical. A blockchain cannot be hacked. The blockchain technology has provided business owners with a way to record digital transactions in a safe, efficient, and transparent manner. Cybersecurity companies are already looking at how they can use the blockchain technology to protect intellectual property.

It Is an Effective Bookkeeping Tool

Finance companies across the world are already exploring ways to use blockchain to keep track of various transactions made by any business. For all companies, maintaining a comprehensive database of assets and financial transactions is mandatory. In most companies, accountants do the job currently. Tasks, such as checking the accuracy of various ledgers, clarifying asset ownership, etc., make tedious jobs, and require a lot of workforce and money. Moreover, there is always some scope for human error. The blockchain technology can be relied on for these tasks. As a matter of fact, the blockchain technology can be used to accomplish these tasks more quickly and accurately.

It Has Enabled Decentralization of Payment Methods

There is no central authority that governs blockchain transactions. Buyers and sellers are directly responsible for overseeing blockchain transactions. Thus, blockchain completely removes the need for a third party to overlook the operations. Moreover, any government in the world cannot inflate or deflate a cryptocurrency. Further, cryptocurrencies are not influenced by world events. Thus, currently, blockchain-backed cryptocurrencies make the perfect item to facilitate transactions. This is the reason why many businesses have started using cryptocurrency for transactions.

With Blockchain, Doing Business Has Become Easier than Ever

Unlike in the case of traditional currencies, buyers and sellers are not required to get approval from a regulatory authority before using blockchain currencies for transactions. Moreover, since there are no third parties or regulatory authorities involved, any transaction accomplished using blockchain currencies does not incur any fees. Thus, with the advent of blockchain and blockchain currencies, doing business has become easier than ever before.

Blockchain Will Make the Work of Health Experts Easier

To be able to treat a patient, doctors need access to their medical history. In the current world, this medical history of a person is often found in fragmented pieces, spread across the ecosystem of various health providers. Many companies are already working on developing a blockchain-based platform that will be able to accurately and instantly present the medical history of any patient. The system will use identity verification techniques to ensure there are no loopholes in the process.

The Bottom Line

Businesses across the world are already looking at how they can use blockchain to their advantage. As time proceeds and people become more familiar with blockchain, this technology will change the way almost all businesses work.

What Makes Blockchain Technology Special?

Even though the blockchain technology has been around for almost 10 years, its popularity spiked with the rise of cryptocurrencies. Many consider it the future of the world’s already established systems and methods. But what exactly is blockchain and why is it so special?

A ‘Chain’ Of ‘Blocks’

The ‘blocks’ represent all data and information – storing things such as a transaction’s date, time and value, transaction participants and their unique ID. The ‘chain’ is the segment that links all the data together and stores them in a digital, public database through cryptography principles.

After these logs are created, they go through a confirmation process in which the validity of a given transaction is checked by multiple computers around the world. Only after the accuracy is verified, block receives its unique ID code and gets added to the blockchain. Since every information is connected with a unique record that has its own history, it’s virtually impossible to falsify any single record.

Decentralization

Since the entire technology is dependent on a large network of computers, there’s no central authority – no one person controls the entire history of the blockchain. The blockchain is constantly updated on every computer in the network when a change is made, making it impossible to tamper within the hands of a hacker.

Blockchain is somewhat of a public ledger – information is transparent and open for everyone to see. It’s a completely decentralized system, which is where its main advantage comes from when compared to banks and other government-controlled businesses.

This was the main idea of Bitcoin – creating a payment system that completely removes the middle man, When sending or receiving cash, there’s no need for a third party. You are the sole owner of your money.

Better Transactions

Transferring money through a centralized system takes days, The blockchain system works 24/7 with transactions taking minutes, even seconds in some cases. This is especially useful when money is sent/received internationally. Since the network automatically works on confirming the validity of the transactions, there’s almost no slowdown.

Even though the ‘ledger’ contains transaction information, everyone’s personal data is concealed. The identity of a person is hidden and presented via complex hashing algorithms. The address of a sender and the receiver is seemingly just a jumbled mess of letters and numbers – no compromising information.

Immutability

What makes blockchain transactions difficult to manipulate? Each block is secured through hashing, a cryptographic function, with each block having a unique value. However, every new block contains hashing data of the previous one in the chain. Subsequent blocks in the chain would notice the unauthorized change in that one block, thus rejecting the modification.

Although there is no system that is completely tampered proof, blockchain is as close to it as it gets. Digital signatures make tampering close to impossible and anyone who would try to modify it to their own advantage would be easily identified.

The blockchain system is steadily improving and becoming more secure. Developers are constantly finding new implementations for it and building upon the existing ones. It’s only a question of when it will become a leading solution to many modern-day technology problems.