October 12, 2018 Knowledge Center

Benefits of Blockchain to Any Industry

When you talk about bitcoin and cryptocurrency, you can’t disregard about blockchain technology. That’s because blockchain is the underlying technology that has given birth to Bitcoin.

Blockchain and Bitcoin have the same father, Satoshi Nakamoto, who introduced the idea in 2008 in his paper called “Bitcoin: A Peer to Peer Electronic Cash System.” The focus of the paper was on the creation of a peer to peer digital currency where people can transact with each other and spend the currency directly without the mediation of a third party. From that point on, both blockchain and bitcoin became a byword across all industries.

Benefits of Blockchain

Although at first blockchain was closely interrelated with Bitcoin, people realized that it can be separated from the cryptocurrency and can be utilized for other uses. A lot of people explored how blockchain can be used in various ways.

Now, around 15 percent of financial institutions are utilizing the power of blockchain technology. Other industries like insurance, healthcare, transportation, and more are also discovering its uses in their respective sectors.

Below are some benefits of blockchain technology:

More Transparent Record Keeping

Blockchain is a digital ledger distributed to all network participants who share the same documentation instead of getting an individual copy for each. Any changes that will be made in that shared document should be agreed on by everyone. Furthermore, changing information on that document means altering all subsequent records in that document.

Therefore, all the data on a blockchain is more transparent and reliable than any other types of storage.

Improved Security

Any transaction that occurs on a blockchain must be approved by everyone before recorded. Once approved, the transaction is encrypted and linked to previous transactions. The data is stored across a network of computers instead of a single one making it almost impossible to alter the data.

Enhanced Traceability

A product that passes through several hands from sender to recipient becomes difficult to track. However, if these exchanges transpire on a blockchain, it will be easier to trace the goods from the beginning, and even the stops it has made before it arrives to its destination. Such a level of traceability eliminates any possibility of fraud and ensures the authenticity of the products.

Speed and Efficiency

Blockchain uses a single digital ledger that is shared by everyone in the network. Thus, it has less clutter. Everybody is notified anytime there are changes made to the document. Because of this, everyone has more trust for each other and does not need any more mediation to complete the processes, making the work much faster and more efficient.

Fewer Expenses

Every business aims to reduce their expenses. That is made possible on blockchain because it removes the middleman in the process. Instead, companies can trade directly with each other because they both have access to any data that goes between them. It does not only save them money but also time because they won’t have to spend a lot of time verifying data.

Benefits of Blockchain to Various Industries

There’s no doubt that blockchain has strengthened the security of data transmission across all networks. The finance industry has greatly benefited from it and other industries are following.

Here are some of the benefits blockchain can bring to each industry:

Healthcare

Blockchain can ensure the privacy of health records. Furthermore, the risk of fraud in healthcare payments will lessen as the community of health professionals who become part of the blockchain grows.

Government

Blockchain allows different government sectors to release data in real time, paving the way for faster service. And because blockchain makes data more transparent, the system of checks and balances become more efficient in preventing corruption from happening. It might not eliminate the problem but the increased level of transparency will significantly affect governments around the world.

Defense

Presently, defense systems are still prone to become victims of cyber crimes. As a result, a great number of classified information gets stolen and could fall into the wrong hands. Blockchain security, on the other hand, is tighter across data centers preventing important data and hardware equipment from getting stolen.

Conclusion

Blockchain presents a lot of potential and possibilities in improving not only the security but also the delivery of data. Thus, there’s no doubt that blockchain will become a key pillar in the digital world.

Share