Nowadays, more than 70% of our huge amount of transactions are done online, which was about less than 5% a decade ago. Does it ever strike that what made the increased the trust of the people? This all is possible due to “Blockchain”.
Blockchain was enforced in the following year by Nakamoto, presenting it as a core component of the cryptocurrency “Bitcoin”, where it served as an individual passbook for all transactions on the network. It has taken rapid pace since then. Soon in January 2015, it took a jump, and the size had grown to almost 30 GB from 20 GB(gigabytes) in August 2014, and in next one-year frame, the bitcoin blockchain increased from 50 GB to 100 GB in size. The file contains records of all transactions that have occurred on the network. Bitcoin has turned out to be the first digital currency that has solved the huge time taking problem without the need of any specialist authority, resulting in becoming an inspiration for many additional applications, only with the help of Blockchain technique.
A blockchain is a decentralised, distributed and a civic digital passbook that is used to record transactions across a large number of computers so that the record cannot be altered retroactively without doing the alteration of all subsequent blocks and the collusion of the network. A blockchain is a continuously growing list of records, called blocks, which are secured and connected using cryptography. Every block typically includes a cryptographic hash of the previous block, a timestamp and transaction data.
The perks of Blockchains are
A Strong Hand on Supply chain management
In supply chain management, the blockchain technology proposes the benefits of tractability and cost-effectiveness. In this genre, blockchain can be used to keep an eye on the movement of goods, their quantity, their origin and related information. This brought a new level of transparency to B2B ecosystems.
Provide You a Quality Assurance
If any irregularity is detected anywhere in the supply chain, a blockchain system can directly lead the user to all the way to its origin. This has created an ease for the businesses that carry out the process of investigations to take the necessary actions.
Surety of Error-free Accounting
Keeping a record of all the transactions through blockchain virtually removes all the human error and protects the data from possible meddling. All the records are verified each and every possible time they are passed on from one blockchain node to the very next. Adding to this, there is a guarantee of accuracy in all the records and the integrity of a company’s financial information.
Smart contracts will Always be in Your List
Sluggish contractual transactions can restrict the development of a business, particularly for enterprises that process a torrent of communications on a steady basis with smart contracts and agreements that can be automatically validated, signed and enforced through a blockchain construct. This removes the necessity of mediators, resulting in saving the company’s assets and resources.
Can Easily Rely on the Trustworthy system
Data structure build using blockchain offers users to do and verify transactions without a third-party involvement. This reduces the risk of a fraudulent transaction and unauthorized interference on a great extent. Modification of previous data is only possible if one large team working simultaneously across data centers. This degrades the possibility of data meddling which helps in building a robust system.
Offer an Establishment of Transparency
Blockchain gives the trigger of all their information and transactions to the users. Blockchain data is complete, correct and consistent with all the members. Any alteration to the public blockchain is available to all the members, thus producing a transparent system.
Reduce the Waiting Time by Providing Faster Transactions
Markets all over the world are preferring work over digital documentation, which takes a longer time to execute transactions. Interbank transactions can take days for clearing and final settlement. Blockchain transactions can decrease transaction times to minutes and are processed 24/7.
This In-turn Reduce transaction costs
A transaction system formed by blockchain kills third-party intermediaries and overhead costs for exchanging assets. A major IT innovation and catalyst for change, blockchain technology can be leveraged by banks to cut down governance and audit costs and to provide better products with faster time to market.
Applications of Blockchain
Firms that use this technology in this genre are Abra, Align Commence, etc.
Blockchain has provided an advanced level in the payment sector. Like
- Giving banking access in remote areas in the countries like Zimbabwe and Afghanistan, where all people may not have access to banks or the banking infrastructure itself.
- Blockchain has provided an ease in International payments. Using Blockchain, the transactions would be done in less than 10 minutes with transaction fees of approx. 15–50 US cents only.
Firms that use this technology in this genre are Citi, Visa, etc. Traditional Services of Finance services are very long, full of intermediates that also make it slow. Blockchain there provided a safe base for the trading.
- Asset Management: Trade Processing and Settlement. The blockchain shelf reduces error when it encrypts the records. At the very same time, the bill simplifies the process, which cut off the need for intermediaries.
- Insurance: Claims processing. Claims processing can be prone to a frustrating procedure. The blockchain built a perfect system for risk-free management and transparency. Its encryption properties allow insurers to take up the ownership of assets to be insured.
Firms that use this technology in this genre are Deloitte, etc. The decentralised ledger became a system for recording and managing property rights as well as it enables the smart contracts to be duplicated if records or the smart key is lost. The ledger stores and offers to exchange these smart keys once the contract is verified. This makes the property smart which further decreases the potential risks of running into fraud, mediation fees, and questionable business situations. At the same time, it increases trust and efficiency.
Supply Chain Tracking
Firms that use this technology in this genre are Walmart, Maersk, etc.
More than 50% of the companies in the world have ERP and supply chain management software. Yet there is a limited visibility and details about the whereabouts of product at any needed moment. Blockchain makes tracking of items across the all over supply chain very easy. The product can be tracked at every stage creating the record of the location, who handled it and when.
Firms that use this technology in this genre are HealthIT.gov, etc.
Healthcare system is a distributed area consisting of many stakeholders and actors. Moreover, there is a very highly sensitive medical data that must be processed and managed in an adequate manner. So, Blockchain can improve healthcare system by enabling:
- An increment in the accuracy of diagnoses due to the data portability and interoperability of records within the healthcare ecosystem.
- Better treatments due to faster and more accurate diagnoses.
- Economical care due to higher efficiency and lower administration costs.
Private health records are encoded and stocked with the help of blockchain providing a private key which would grant access only to specific individuals.
There is a massive change seen in the consumer behavior and expectation which is mainly due to the blockchain that is providing the preferred solution in so many areas. The days of the brokers are quickly ending, and consumers are forcing the issue with every choice they make. Through blockchain, there is a rapid decrease in the cases of fraud and commission parties. These are only a few benefits and applications of the blockchain, there are a lot of credits one gets when switching to the blockchain.