Blockchain has changed the way we perceive problems. It has brought a lot of benefits. Most importantly, this technology solves critical problems like trust in a network. Any organization can focus on solving the issues by changing the key parameters and trust. Governments worldwide have recognized blockchain technology’s importance and are eager to adopt it. For instance, Dubai Smart City 2020 is an initiative that aims to build a smart city using new technologies, including blockchain technology. So what are the advantages of blockchain technology? Let’s take a look at the top 5 Blockchain benefits.
How Can Blockchain Help Your Business Move Forward?
Cryptocurrency exchanges are not the only companies using blockchain solutions. There are several advantages that this technology can offer businesses in many different industries due to its decentralized nature:
In payments and real estate, Blockchain benefits from eliminating the need for intermediaries due to its decentralized nature. Compared to traditional financial services, Blockchain enables faster transactions through cross-border P2P transfers using a digital currency. Property management processes become more efficient through a unified system of property records and smart contracts that would automate tenant-landlord agreements.
The biggest feature of Blockchain is that the transaction ledger is openly visible to public addresses. In financial systems and businesses, this leads to unprecedented accountability. Every part of the business is obligated to act with integrity for business growth, the community, and customers.
With the blockchain ledger, every exchange of goods recorded on a blockchain creates an audit trail that users can use to trace the origin of the goods. This can help improve security, prevent fraud in exchange-related transactions, and verify the authenticity of traded goods. In industries such as medicine, you can trace the supply chain from manufacturer to retailer; in the art industry, it can provide irrefutable proof of ownership.
Blockchain is far more secure than other systems of record because each new transaction is encrypted and linked to the previous transaction. A network of computers forms the Blockchain benefits to validate a “block,” which is then added to a ledger to form a “chain.” The Blockchain is formed by a complicated mathematical sequence of numbers and cannot be altered. Blockchain’s immutable and incorruptible nature makes it safe from forged information and hacks. Its decentralized nature also provides it the unique property of being “trustless” – meaning that parties do not need trust to conduct secure transactions.
Companies invest a lot of money in improving and managing their current system. As a result, they want to reduce costs and put money into building new processes or improving existing ones.
By using Blockchain, companies can save a lot of costs related to third-party vendors. Since there is no central player with Blockchain, they don’t have to pay for vendors. Also, less interaction is required when validating a transaction, so one must spend less money or time on basic things.
Which Industry Can Benefit From The Blockchain?
Almost all industries can benefit from the Blockchain. The four sectors that we believe will benefit the most are energy, real estate, logistics, healthcare, finance, and government.
Companies are already utilizing blockchain technology after realizing its potential. To get an idea of how exactly different industries are taking Blockchain benefits, let’s take a quick look at each.
Benefits In The Finance And Banking Sector
Considering that Blockchain technology operates on a decentralized platform, it reduces the interference of intermediaries. This both reduces costs and streamlines process efficiency. It offers an automated network system, lowering all transaction and operational costs. Automation is simplified through smart contracts, and errors are less likely to occur. It also provides a solution to data breaches by offering digital security. All aspects, such as business processes, asset management, and identity management, become seamless as they can be easily programmed and customized.
Benefits For The Hospitality Industry
Blockchain technology can offer a great travel experience for customers and improve collaboration. It can help simplify domestic and international payments through its security system and provide an easy way to pay for travel expenses. Digital payments become easy and secure through the blockchain network, which acts as an encrypted ledger. Through the shared digital database, customer check-in and identification can be made through fingerprint verification. Since the records are immutable, the Blockchain offers the added benefit of accurate baggage tracking. This makes transactions more contactless.
Blockchain Benefits For Healthcare
Records are the backbone of any industry, so their importance in healthcare is undeniable. An accurate patient history provides a solid foundation for administering the right medications and diagnoses. Blockchain benefits from storing and tracking information in real-time. This aspect allows easy access to the traceability of an individual patient’s medications. Due to its high data security and accessibility, decentralization and transparency enable seamless clinical trials and research.
Blockchain technology can reduce waste, provide transparency, and offer security that users can use to protect data. Managing business operations with a single software package is no longer the exception but the rule. As a result, it’s becoming increasingly difficult to keep track of all your business processes with separate applications (each designed for specific functions). For example, your sales team manages sales leads, your manufacturing team tracks production requirements, and your IT team monitors hardware and software configurations.