Blockchain has been around since 2008. For more than a decade, it has been positively disrupting a number of industries, finding applications in business, government, banking, and education. However, its full potential yet has to be revealed.
In this article, we will explore the numerous opportunities of the blockchain technology for business, uncover how it powers Web 3.0, and take a sneak peek into the future. Read on to learn more!
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Why Is Blockchain Revolutionizing Business Processes?
To fully grasp the revolutionary impact of the distributed architecture, let’s take a closer look at how it works. So what is blockchain, in a nutshell?
Put simply, a blockchain is a database. Yet, while ordinary databases are located on one server, this ledger is distributed among the numerous nodes in a computer network. Such architecture makes the data stored in small data blocks across the network virtually impossible to delete. Whatever gets into the blockchain stays there for good.
Its other core elements include:
- Hash encryption – an encryption method that takes plaintext data and transforms it into ciphered text.
- Smart contracts – transactions that take place automatically upon the fulfillment of certain conditions.
The impact of decentralized architecture is hard to overestimate: the records are precise and secure to the point when a trusted intermediary is no longer necessary. The distributed ledger is also called trustless since the blockchain itself is built in a way that ensures security.
What Are the Main Blockchain Benefits Businesses Can Take Advantage Of?
Transparency
All the stakeholders have equal access to the database and can view the information that it holds. It is also impossible to change the records without informing the other parties since every change is time and date-stamped. This helps achieve maximum transparency and eradicates fraud.
Traceability
Blockchain holds the history of all changes and transactions, so all information stored in a blockchain is fully traceable. Whenever a confirmation of reliability is needed, the ledger itself acts as eligible proof. Companies may use blockchain to win customer trust and eliminate guesswork around environmental or human rights issues. It is also used to trace the goods and materials across the supply chain, and detect and eliminate the shortcomings.
Automation
Smart contract technology helps verify the terms automatically and make instant transactions without human intervention. Such a level of automation also helps eliminate errors. The agreements are fulfilled automatically when the terms of the contract are met.
Efficiency
Needless to say, the use of decentralized technology completely eliminates paperwork and helps streamline and accelerate every process. This helps reduce time-to-market and results in increased efficiency. It also accounts for an increased satisfaction of customers and all parties involved.
In other words, blockchain opens a doorway for a brand new way of doing business based on fairness, transparency, equality, and zero bias. Automation, complete security, and efficiency make distributed architecture highly attractive for companies and investors.