Blockchain, the technology that entered the market as the backbone of cryptocurrencies like Bitcoin, is now eking out space in a wide range of industries and fields. The technology is gradually disrupting different business verticals, such as Finance, Supply Chain, Healthcare, Real Estate, Media, Entertainment, Government, etc.
Blockchain technology is not just adding value to the enterprise world but is redefining the business model with its enormous set of facilities, including but not restricted to lower fraud, higher security, and trust building. This has created a hype in the market, making it necessary for the enterprises to pay attention to the technology.
If you are an enterprise and are still wondering why you should invest in blockchain app development, have a look at the following perks of the technology:
Privacy and Security
Blockchain technology is redefining the terms – security and privacy. It employs an algorithmic consensus formed by verification through the network to add entries to blocks. These blocks are added in the form of a chain, i.e, they are connected to all the blocks before and after them. This implies a hacker can’t alter a single record without affecting the connected blocks.
On the top of it, blocks are locked using the ultra-modern cryptography methods. The authorized users are provided with their own private keys that act as a digital signature. And if one needs to access any entry or block, he/she has to ask permission from the other associated clients. In rare cases, if a record is altered, the digital signature will become false, and the peer will come to know that something wrong has happened.
Blockchain has not only made the records secure, but has also lend a helping hand to the enterprises regarding the privacy issues. With this technology, the users can implement selective encryption of data which will restrain access by authorized users. In other words, they will be able to decide who can have access to the sensitive information.
Since Blockchain is a distributed ledger technology, all the connected users have to agree upon a shared documentation which can be updated only via consensus. To change an individual record, it is required to alter all the connected records or collusion of the whole network. As already mentioned, all the authorized users will be notified whenever a change is made within a block, which implies data is far more accurate, steady, and transparent than that in case of paper-heavy processes.
Speed and Efficiency
The conventional paper-heavy processes are time-consuming, error-prone and usually demand third-party involvement. However, the same process is faster and efficient with the introduction of the ‘technology for trust’. The technology keeps all the records under a single digital ledger which is shared among the connected users. This means you need not integrate multiple ledgers which eventually lower the risk of errors. Besides, everyone has access to the same information. No mediator is involved in the process, which builds trust among the connected users. This makes settling up of agreements much easier and quicker.
To prevent downtime and crash data scenarios, the traditional enterprise systems from Oracle and other platforms turn towards replication of services and redundancy. This might seem the best method, but it turns out to be tough for an individual to manage the complete data. Blockchain technology, in this scenario of downtime and crash data, follows a different resilience approach. The technology offers facilities like autonomous monitoring, redundancy and recoverability of crashed components, along with a continual embedded backup of configuration data and ledger data, which makes the data retrieval process easier and effective without human intervention.
Another great benefit of blockchain to the enterprises is the ability to trace goods. Now, the companies can check each and every stop a product/order made on its journey along with the initial and final destination. This helps in verifying the authentication of a product and lessen the risk of fraud.
A compelling example of this is Everledger, which has inscribed a serial number into the diamonds and recorded on the blockchain. This way, it is helping all the associated communities – from banks to insurers to consumers – to determine if the diamond is authentic or not, and how it has been obtained.
Before, enterprises used to hire different third-parties for making guarantees while getting into a deal. They have to go through various documentation to complete a trade. But now, thanks to Blockchain technology, they need no intermediates. Also, they do not require to review a lot many documentations since a single, immutable copy is shared by all the participants.
Besides, the payment process has also become more cost-effective with the advent of the blockchain. Before, when a person makes a cross-border payment, the amount travels from different banks and currencies before it reaches its destination. But now, the ‘technology for trust’ has cut down the need for middlemen, which means the amount is transferred easily and faster. If you have a look at the Deloitte study, it has been observed that Blockchain reduces the cost of cross-payments by 2-3% along with the opportunity of having a guaranteed and real-time transaction.
Blockchain technology is laying the foundation of a new business model, offering exclusive opportunities and possibilities for a seamless and effective processing. The technology is still in its nascent stage but is expected to stay for a long. According to the recent reports, the global blockchain market will rise up to $20 billion by the year 2024. This implies enterprises can’t overlook the need of investing in blockchain app development if they want to see business growth and productivity.
Guest article written by: Being in the writing business for several years now, Tripti Rai is presently focussing on unfolding the elements that make mobile devices interesting. Currently associated with Appinventiv as a Content Manager, she is keeping herself well read with how lives are/ about to change in the wake of world entering the Mobile Era and how to prepare the world for the race. When not writing, you can find her slurping chocolate shake in a stray dog’s company.