Is Blockchain the future?

People view blockchain technology as bitcoin technology. The main reason is that they came to know about blockchain technology when they started trading with Bitcoin. Blockchain technology brings us abounding benefits along with it.

Is Blockchain the future?

People view blockchain technology as bitcoin technology. The main reason is that they came to know about blockchain technology when they started trading with Bitcoin. Blockchain technology brings us abounding benefits along with it. 

The main advantage of this technology is that it helps create trust between parties to a transaction. Trust is the key to business success. Apart from business, many sectors can benefit from blockchain technology. Understanding this, many Governments have started adopting this technology that might aid millions. Dubai smart city 2020 is based on this technology to build a smart city.

Advantages of blockchain technology:

Transparency

Transparency is the main issue that infests every business. People prefer companies that are transparent in their activities. Centralisation doesn't allow a firm to be completely transparent. Blockchain technology authorises decentralisation as it doesn't require a single authority to control the organisation. In blockchain technology, many peers transact and validate them. Not all peers need to validate the transaction. They apply the consensus method, hence allowing maximum transparency. So many Governments are thinking of using it to provide more transparent governance and voting system.

Improved security

Since blockchain technology is a shared, immutable ledger, it helps to keep the data secure. The transactions reflected on the ledger should be authorised by peers as well. A block that records the transactions using this technology is encrypted and connected to the previous transaction through hashing method. If any of the parties to the transaction want to modify a transaction, nodes that records transactions in the ledger won't allow him to do the malicious act. 

Cost reduction

Every business hopes to improve the present system to cut costs and divert the funds into something productive to earn more profit. If a firm uses blockchain technology, it can cut costs the business is already paying for 3rd party vendors. Blockchain technology promotes decentralisation, allowing any party to the transaction to record it to the ledger. Once transactions are recorded, no one can change later on.

Traceability in the movement of assets

One field that can drastically improve due to blockchain technology is supply chain management. The logistic sector can improve the supply chain infrastructure drastically. This technology helps to enhance transparency while the goods are in transit, thereby incorporating accountability for the safety of the goods. A supply chain includes various parties like suppliers, manufacturers, retailers, customers, etc. The shared ledger helps the auditors to crosscheck every transaction.

Enhances speed

This technology automates work, making it easy and convenient. Automation reduces human errors while entering the transactions into the ledger. When a single ledger stores all the transactions in one place, it improves trust as anyone can inspect it without any difficulty. It streamlines the whole process and stores transactions in a unique way. Thus, it improves the speed of the process.

Final say

In short, blockchain technology is a boon to the world, revolutionising the function of various sectors of the economy. Many sectors like finance, real estate, health, even government are ready to use this technology for its top-notch benefits. It streamlines the activities of the businesses offering transparency to the stakeholders.