You most likely heard about it, but there's a big chance that you haven't tried to implement it in your business strategy. Get to know why blockchain is a future (because it is!).
Entrepreneurs have to keep in touch with new technologies. However, blockchain still remains a mystery for the majority of senior executives. As Global Blockchain Business Council reports, supported by the survey executed in 2019, 63% of them are not even familiar with the meaning of the term blockchain. So, let's start by explaining this revolutionary technology, as it will help to understand the advantages of it in the further part of our article.
What is blockchain? Speaking shortly, it's a technology that allows the data to be shared but not copied. It's a fundament of digital currencies. With blockchain, the data among the network is distributed in blocks. Such a distributed ledger is:
- transparent - because accessible for all individuals involved;
- decentralized - no unit can take control over it;
- invariable - the data can be added to the database but not erased.
Why blockchain is important for business? Understanding the meaning of its way of distribution is the key to know why blockchain is used (more and more commonly). Above all, it allows making the database fully decentralized. This way of data distribution raises its quality, safety, and resistance to censorship.
For a long time, blockchain was a domain of Bitcoin and other digital currencies. Because of its features, this technology is the best protection for the monetary and identity data, However, it starts being more and more present in the other branches of the business. The reason above all is the safety it provides. If you are determined to raise its level, visit createIT to search for various solutions.
#1 Decentralization of data
The decentralization of data decreases many risks that the centralized systems are prone to because of the way they function. The ultimate control of one party brings the danger of possible cheat and pressure in many forms. Decentralization reduces it by sharing the blocks of data between more than one unit. There are various variants - from two entrepreneurship up to a spread network of parties, the identity of which is not necessarily known.
The security of data is closely connected to the implementation of blockchain. The blocks constructed from the data are encrypted and linked together what makes sharing digital information more secure. It's an advantage not only for the company but also for its customers. By implementing this technology, you can raise the trust of your clients.
#2 Reducing costs
The main reason why many companies decide to switch to distributed ledger. How does the blockchain influence operational costs? By removing the party in between your server and the data, the access is easier and faster. Blockchain technology increases the speed and efficiency of processing the data. It automates the process, making it less time-consuming. Also, it reduces the risk of human fails, which may affect the traditional process. That means less financial loss
#3 Easier tracing
This feature may be especially important for your company if you distribute the products basing on a complicated supply chain. Tracing all the transaction will be easier for you if using the blockchain technology. If all the data is stored on the distributed ledger, it's very easy to investigate all the history of the transaction. It may be very helpful in terms of raising the security measures.
The presented advantages are only examples of how this technology can positively influence your business. If you are not sure how to implement it, try Blockchain consulting to get professional support.
