What are the business benefits of blockchain?
Definition? A blockchain is “a distributed database that maintains a continuously growing list of ordered records, called blocks.” These blocks “are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.”
The primary benefit of blockchain is as a database for recording transactions, but its benefits extend far beyond those of a traditional database. Most notably, it removes the possibility of tampering by a malicious actor, as well as providing these business benefits:
-Time savings. Blockchain slashes transaction times from days to minutes. Transaction settlement is faster because it doesn’t require verification by a central authority.
-Cost savings. Transactions need less oversight. Participants can exchange items of value directly. Blockchain eliminates duplication of effort because participants have access to a shared ledger.
-Tighter security. Blockchain’s security features protect against tampering, fraud, and cybercrime.
The First Distributed Ledger
The simplest way to understand blockchain and the distributed ledger system is to look back two thousand years ago to the Pacific island of Yap.
The Yapese were using what today is called a distributed ledger system.
The primary benefit of blockchain is as a database for recording transactions, but its benefits extend far beyond those of a traditional database. Most notably, it removes the possibility of tampering by a malicious actor, as well as providing these business benefits: Time savings. Blockchain slashes transaction times from days to minutes. Transaction settlement is faster because it doesn’t require verification by a central authority. Cost savings. Transactions need less oversight. Participants can exchange items of value directly. Blockchain eliminates duplication of effort because participants have access to a shared ledger. Tighter security. Blockchain’s security features protect against tampering, fraud, and cybercrime. (Deloitte)
Blockchain in IoT and Networking
Companies such as IBM and Samsung are adopting Blockchain technology to develop a distributed network of IoT devices. The concept is called ADEPT and it aims to remove the centralized location for the management of communication between devices for activities that include software upgrades, error handling, observing energy practices, etc.
Conclusion
Without a doubt, Blockchain technology’s benefits will soon attract businesses and organizations around the world to invest more in it. It is still in its starting phase but this, one of the newest technologies.