Benefits of Blockchain Technology to Businesses

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Thrilled about Bitcoins and cryptocurrencies? You possibly are, way to all the buzz surrounding Bitcoin’s record-breaking hikes. It’s almost surreal to suppose that, in 2011, Bitcoins traded for $1 each. Recently one Bitcoin worth touched whopping $19,000.

The core technology that runs behind the Bitcoin is Blockchain. Blockchain is the virtual and decentralized ledger technology that records all transactions without the need for a monetary intermediary like a financial institution. It appears to provide 8 distinct blessings over current payment facilitation networks that might make it a move-to technology for the financial services enterprise (and other industries) in the destiny.

1. Transparency

One of the high motives blockchain is interesting to groups is this era is nearly always open source. Meaning different users or developers have the possibility to regulate it as they see the fit. But what’s most important about it being open source is that it makes the alteration of logged information inside a blockchain relatively very difficult or impossible. In any case, if there are infinite eyes at the network, someone surely going to notice that logged data has been altered. This makes blockchain a specifically secure technology.

2. Decreased Transaction Costs

The blockchain is de-centralized, which means blockchain allows peer-to-peer and business-to-business transactions to be completed without the need for a third party, which is often a bank. Since there’s no middleman involvement tied to blockchain transactions, it means they can actually reduce costs to the user or businesses over time.

 

3. Smart contracts

Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman.

The best way to describe smart contracts is to compare the technology to a vending machine. Ordinarily, you would go to a lawyer or a notary, pay them, and wait while you get the document. With smart contracts, you simply drop a bitcoin into the vending machine (i.e. ledger), and your escrow, driver’s license, or whatever drops into your account. More so, smart contracts not only define the rules and penalties around an agreement in the same way that a traditional contract does, but also automatically enforce those obligations.

Today, blockchain solutions like CREDITS offer autonomous smart contracts paired with its own internal cryptocurrency. By consolidating everything into a single platform, businesses can integrate services without disclosing an excessive amount of proprietary information to third parties.

 

4. Security

As each transaction is verified within the network using independently verified complex cryptography, the authenticity of the information can be assured. Assured information is one of the fundamental keys to unlocking the benefits of the Internet of Things (IoT), which is a closed loop cyber autonomous process linking assets to actions. A version of this is currently being used in the defense Industry for verification of instructions and protection of IP.

 

5. Voting

Blockchains boil down to trust in the aspect of voting. Presently, opportunities that pertain to government elections are being pursued. One example is the initiative of the government of Moscow to test the effectiveness of blockchains in local elections. Doing so will significantly diminish the likelihood of electoral fraud, which is a huge issue despite the prevalence of electronic voting systems.

Another example is when NASDAQ leveraged blockchain technology to facilitate shareholder voting. It worked with the joint efforts of their blockchain technology partner and local digital identification solutions, which provided governments with identity cards. After seeing success, they described the “e-voting” project as a practical, necessary and disruptive.

 

 

While Blockchain has been designed to serve the digital currency; however, it can also help the businesses in serving their needs. Therefore, business owners should use this technology in their business and make a boom in the industry.

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