Have you ever imagined why there is still a lots of paperwork and paying a visit to a legal or notary office manually ? It happens because these transactions is dependent on the third party for verification to maintain everything in order. This means that the involved parties are confirming their commitment to the transaction. Similarly, it happens for the complex transactions. BlockChain does this in a different way. The involved parties can verify their transactions directly via chain.
BlockChain Technology has created the backbone of new type of internet. The first and most well known BlockChain Technology is Bitcoin. It uses BlockChain to keep track of all transactions on the network. Currently, the World Economic Forum also named BlockChain as one of the Top 10 Emerging Technologies of 2016. Apart from other technologies, like autonomous transportation, it has a promise of being disruptive on a global scale.
Simply, BlockChain is reference to each blogs, identifying each block by hashing function that forms an unbroken chain. Once the data is recorded in the block, it can’t be modified retroactively, BlockChains are intrinsically resistant to modification of the data. BlockChain is secured way of online transaction. BlockChain is decentralized digital ledger that records transactions on thousands of computers globally, so that the registered transactions cannot be tampered with and remains unchanged. This eliminates the risks that come with data that is being held centrally.
There are large number of implementations of BlockChain available next to Bitcoin. For example, ethereum provides a platform for creating smart contracts, that are performed digitally having capability of self-execution.
There are many reasons why businesses need BlockChain. Some of them are listed below :
- Thwarts Payment Scams : Preventing scam is done smart contracts that ensures both parties follow through agreement, tamper proof public ledgers creates difficulty in altering counterfeiting. Moreover, transactions are transparent.
- Improves Enterprise Collaboration : This is promising opportunity as the BlockChain social networks are uncountably higher in privacy, richer and more flexible than current networks.
- Industrial Mash-Ups : BlockChain alliances between different parties for the use of assets to create a new business profile. It occurs without impacting the other party’s use of the assets or capabilities for their original business purpose.
- Opens Up Manufacturing : BlockChain helps to introduce new markets for the manufacturers for all shapes and sizes.
- Cuts Out The Middlemen : Since, BlockChain is peer to peer system, it means the transactions are done only between you and the other party. It removes the third parties.
- Facilitates The Growth Of The Internet Of Things : BlockChain has automatic go-to registry for the ownership and also to maintain everything within IOT. This makes the security concerns a thing of the past, and eventually allows for the equipment to repair itself.
- Access To High Quality Data : The data in the BlockChain is always consistent, accurate, complete and widely available.
- Real-Time Transactions : Because BlockChain is decentralized and peer-peer, the transactions are done instantly.
- Increases Cloud-Storage: Because BlockChain uses encryption key, it is certain that no one will access your data except you.
- Pay-For-Performance : By the use of smart contracts, you business can pay financial reward to your employees that is part of their monetary compensation.
- Reward Users : Apart from rewarding employees, you can also reward your loyal customers with the help of BlockChain technology.
- Improves Regulatory Compliance : BlockChains have power to keep the transactions secure, as well as notify the businesses about the latest regulations.
Moreover, the BlockChain plays an important role in know your customer. Grabbing with the new technologies ensures effective economic development.