Since the introduction of Bitcoin in 2009, blockchain is a term that has been rising in fame. From business enterprises to governments of various countries, the technology is being widely adopted. But why should you use it? How can blockchain impact your use case? Read on to find out!
The Security Aspect
The hype around blockchain technology stems from the fact that it solves a significant issue in most industries today— trust. Those who use the blockchain run it themselves. Therefore, a third party does not need to authorize the information on a blockchain.
Being a distributed ledger technology, change in a single block on any chain would be evident. To hide a change, it would be necessary to change every block on the chain following the tampered block in at least half of the nodes on the network. This makes it nearly impossible for hackers to corrupt a blockchain system. The longer the chain, the stronger its security is.
The Control Aspect
Blockchain lets information owners have complete control over who accesses what part of their data, depending on the nature of the network— private, protected, or public. The enforcement of such limits is done by smart contracts, which are programs that can run automatically when a particular condition is met. In short, it’s a self-executing agreement.
Unlike some conventional ownership records that need physical access even when they’re open to the public, blockchains make accessing information user-friendly. At the same time, the owner still controls the “when” and the “how.” This leaves little to no opportunity for friction between entities involved in transactions.
The Cost Aspect
The nature of blockchain allows organizations to cut a lot of their costs. The absence of middlemen directly translates to low costs. Increasing the efficiency of processing transactions also reduces the need for a workforce in data aggregation, reporting, and auditing.
Blockchain essentially brings in autonomy in financial transactions and reduces the cost of authenticating transactions. A Santander FinTech study found that distributed ledger technologies can reduce the cost of financial services infrastructure by 15 to 20 billion US dollars per year before 2023.
The Time Aspect
Elimination of intermediaries and several other manual processes makes handling transactions super fast. Although the time taken to process a transaction can depend on various factors, experts say that blockchain is faster than alternative technologies. For instance, Walmart used blockchain to find the source of a defective package containing sliced mangoes in under a minute, which would have taken a week otherwise.
With blockchain, you can induce transparency and immutability and enhance the security of your data. The transition from centralized systems to decentralized systems has made blockchain a highly valuable technology in current times. By using a decentralized system and improving cost and time efficiency, blockchain can transform any system that works with digital assets.
So call Blockchain consultants in Houston, Texas, to figure out the best way to incorporate blockchain for your use-case scenario!