The blockchain is more like a digital ledger to store financial transactions just like a book that contains what comes in and what goes out. Unlike traditional ledger, the digital one is a lot more vast and secure with no intermediaries involved.
In Blockchain, each block contains, but not limited to, a cryptographic hash of the previous block along with the transaction data. It can be used by two parties to record transactions in a secure and permanent way. It is managed by a peer-to-peer network and allows the safe transit of digital information.
Why is Blockchain the latest revolution in technology?
Blockchain technology was originally designed to deal with Bitcoin but now it has become the talk of the town, a revolution. During its earlier stage, the technology confronted heavy criticism and rejection but after a thoughtful revision, it came out to be more productive, more useful, and more secure. It has now become a practical way to store data in a digital form that is reconciled from time to time.
Let's take a look at some of the benefits:
Authenticity - The information is stored in blocks that are further stored on Blockchain that cannot be controlled by a single person or identity. It simply means that there are no or very fewer chances of failure and the technology can serve as a reliable space for a business transaction.
Transparency - The tech-savvy people claim that the Blockchain technology is totally transparent. As the blocks are recorded and added to it in chronological order, the participants are able to keep track of the transactions with a lot of ease and without recordkeeping.
Quality - In case of any irregularity, a Blockchain system makes it easier for concerned partied to investigate any issue as the system can lead them all the way to its point of origin. The quality assurance makes it an ideal technology for sectors where tracking the origination and other crucial details are necessary.
No Tampering - As the transactions and records are verified every single time they are passed on from one block to the next, there are less or no chances of error. The accuracy of the process protects the data from tampering, making the technology more user-friendly and efficient.
Agile - In the era when the time is money, Blockchain can play an imperative role by allowing faster dealings. As the system does not require a lengthy process of verification and clearance, it can be used by different industries for closing the deals fast.
Cost Saving - Last but of course not the least, Blockchain is a cost-effective technology because it does not involve any third-party. It makes the system an ideal one for both startups and established organizations.
Well! The time has come to understand the technology and its benefits before applying it to any business...
By Avneet Kaur Sidhu
Labels: Blockchain, Data Science, Digital Technology
