Blockchain technology is mainly associated with cryptocurrencies like Bitcoin and Ethereum. However, decentralized applications can be built with various business benefits using Blockchain.
For instance, Blockchain helps you achieve consensus across a network of users to verify the validity of transactions without compromising data privacy or confidentiality. It also allows you to create smart contracts that are executed automatically without human intervention.
Considering the many benefits of Blockchain, it is no surprise that developers are building decentralized applications with this technology. Although you might not need to go all out and create a decentralized application from scratch, if your business can benefit from Blockchain, there are some simple ways you can integrate the technology into your existing systems.
Six Business Benefits Of Blockchain Technology:
1. A Distributed Ledger Can Protect Your Company Against Fraud And Cyber-Attacks
One of the primary goals of doing business is to make profits for shareholders or owners. Most companies track these profits through centralized systems, which become targets for fraudsters who will go to any length to steal money. Global damages from cybercrime are expected to reach $6 trillion annually in 2021, up from $3 trillion in 2015, as reported by Cybersecurity Ventures.
There is no central point in blockchain technology that attacks because the ledger is distributed over a peer-to-peer network of computers. Every time a new transaction is initiated, it’s encrypted and sent to all computers on the web. If one computer tries to alter the ledger, the rest of the copies will still show an accurate record of past transactions.
2. You Can Create Smart Contracts With Blockchain Technology
Today, many businesses rely heavily on contracts because they outline each party’s responsibilities and obligations when working together.
However, manually executing these contracts can be time-consuming and tedious since most transactions are usually based on trust. For example, you may have to check your agreement to see if the other party has fulfilled their end of the arrangement before sending them funds or goods.
With blockchain technology, you can create smart contracts that contain all the contractual elements of a traditional arrangement but are executed automatically when certain conditions are met.
3. Blockchain Helps You Achieve Consensus Across A Network Of Users To Verify Transactions
One of the primary benefits of blockchain technology is that it helps achieve consensus among users over the validity of transactions without compromising data privacy or confidentiality.
Every time there is a transaction in Blockchain, all computers in the network work together to verify that it is valid. Once everything checks out, the transaction will be approved and added to the ledger.
4. Blockchain Gives You An Immutable Record Of Transactions
Another benefit of blockchain technology is that once a transaction has been recorded onto the ledger, it cannot be altered or tampered with– so it is secure. This helps ensure that all your records are accurate and verifiable.
5. Blockchain Helps You Track Goods As They Move Through The Supply Chain
Another use of blockchain technology is to help track goods as they move through the supply chain. This way, businesses can easily monitor their inventory by simply scanning QR codes on each item or checking their ledger records.
6. Blockchain Technology Offers The Ultimate Protection For Data Breaches
Finally, Blockchain is the safest way to protect your business’s data because it removes the risk of exposing sensitive information. Since transactions on Blockchain are anonymous and encrypted, hackers won’t steal any personal or financial information that could harm your company. Digital security is pivotal in today’s world, where cyber criminals constantly threaten businesses of all sizes. A decentralized system of data storage gives companies new ways to protect their most valuable information.
Blockchain technology offers businesses many benefits, but they don’t all have to be completely decentralized.Blockchain helps you achieve consensus among users in a secure peer-to-peer network, which means you can even integrate the technology into your existing systems without having to switch everything up.