Following the recent cryptocurrency rallies and increased adoption, many businesses and organizations all over the world are glamouring to implement blockchain and enjoy its benefits. For beginners, blockchain technology was originally introduced to serve as a virtual ledger for Bitcoin transactions. But it has numerous applications in different industries, especially when it comes to record-keeping.
Many organizations have already utilized it and have achieved a lot in return. Blockchain is also set to take the world to another level of sophisticated technology. Therefore, here is why you should consider Implementing blockchain to improve your business.
Blockchain upholds transparency
Transparency is currently one of the biggest problems most businesses have. Although there have been enormous efforts geared towards assuring accountability, many businesses still struggle to protect the data of customers.
In an ideal business environment, stakeholders, employees, and customers tend to have their records of transactions, agreements, and other documents. This method makes record-keeping inconsistent, and it takes a longer time to monitor transactions, approve suggestions, and ensure total accuracy. It also consumes money, energy, and resources.
But with blockchain, all transactions are transparent, as it is via a distributed ledger that gives all network participants equal access to the same document. In other words, blockchain minimizes the need to have individual copies of everything concerning the business. All shared documents can only be updated by mutual agreement of all parties involved, and everything is accurately recorded and timestamped. Blockchain also guarantees consistency and ensures a smooth flow of business activities.
Speed and efficiency
A paper-based process for record-keeping is very time-consuming and also requires a third-party to check things through, making it susceptible to human errors. But blockchain cuts through these tedious processes by providing a single digital ledger to process and store transactions amongst all participants. In addition to that, everything is automated, so there is no need to worry about human errors, and everyone works with the same information. A shared ledger also makes it easier for participants to trust themselves, eliminating the need for a third-party to validate everything. Blockchain can streamline everything about your business and make processes faster and more efficient.
Blockchain technology is an authentic way of storing data, especially for businesses or organizations that need a clear audit trail to keep financial records or other information. As we mentioned earlier, all transactions are recorded simultaneously, so an audit trail is created automatically. And once data is recorded, it is not possible to alter anything.
All transactions on the blockchain are held in all the computers in the chain, which keeps data safe. The process of authentication is also easy, making it difficult to experience fraudulent activities in the organization.
Blockchain technology can significantly upgrade the security of your record-keeping system. All transactions that have been agreed upon and recorded are automatically encrypted and linked to the previous transaction. Every node in the chain holds a copy of all transactions, which further strengthens the security system.
Also, as information is shared on a network of computers, it makes it difficult for hackers to gain access to your information. However, if hackers compromise one computer, they cannot alter prior transactions and can’t add anything new without the consent of other computers. This, in turn, assures customers that they are safe with the organization.
Blockchain technology reduces cost of running a business
Reducing costs, by all means, is always the desire of many businesses, irrespective of size. Blockchain technology can lower the cost of running a business. Although maintaining your IT structure can be costly, it is one of the most attractive features of blockchain technology. But contracting a blockchain development company to create the software you need will reduce the costs of setting up your IT framework, as they don’t charge outrageous fees.
When you have set up an effective IT structure, blockchain enables you to do virtually everything faster, minimizing both personnel and administrative costs. And as all parties can trust the data shared, you do not need to use third parties to check, verify, and manage transactions. You will also have less need for intermediaries like banks, brokers, and lawyers, saving more money, resources, and time.
It is beautiful to see that something that was designed to make cryptocurrency feasible has become a revolutionary tool for organizations (big and small) in different industries. Blockchain has shown great prowess over time. Hence, we advise business owners, both big and small, to take a closer look at blockchain technology and how it could improve business practices.