What are the business benefits of blockchain?
In legacy business networks, all participants maintain their own ledgers with duplication and discrepancies that result in disputes.
However, by using blockchain-based shared ledgers, where transactions cannot be altered once validated by consensus and written to the ledger, businesses can save time and costs while reducing risks.
Immutability mechanisms of blockchain technologies lead to lowered cost of audit and regulatory compliance with improved transparency.
No more intermediaries which can save both time and money.
Five of the biggest advantages of Blockchain technology.
Transparency
One of the prime reasons blockchain is intriguing to businesses is that this technology is almost always open source. That means other users or developers have the opportunity to modify it as they see fit. But what's most important about it being open source is that it makes altering logged data within a blockchain incredibly difficult. After all, if there are countless eyes on the network, someone is probably going to see that logged data has been altered. This makes blockchain a particularly secure technology.
Reduced transaction costs
As noted, blockchain allows peer-to-peer and business-to-business transactions to be completed without the need for a third party, which is often a bank. Since there's no middleman involvement tied to blockchain transactions, it means they can actually reduce costs to the user or businesses over time.
Faster transaction settlements
When it comes to traditional banks, it's not uncommon for transactions to take days to completely settle. This is due to protocols in bank transferring software, as well as the fact that financial institutions are only open during normal business hours, five days a week. You also have financial institutions located in various time zones around the world, which can delay processing times. Comparatively, blockchain technology is working 24 hours a day, seven days a week, meaning blockchain-based transactions process considerably more quickly.
Decentralization
Another central reason blockchain is so exciting is its lack of a central data hub. Instead of running a massive data center and verifying transactions through that hub, blockchain actually allows individual transactions to have their own proof of validity and the authorization to enforce those constraints. With information on a particular blockchain piecemealed throughout the world on individual servers, it ensures that if this information fell into unwanted hands (e.g., a cyber-criminal), only a small amount of data, and not the entire network, would be compromised.
User-controlled networks
Lastly, cryptocurrency investors are tending to be really encouraged by the control aspect of blockchain. Rather than having a third party run the show, users and developers are the ones who get to call the shots. For instance, an inability to reach an 80% consensus on an upgrade tied to bitcoin's blockchain is what necessitated a fork into two separate currencies (bitcoin and bitcoin cash)
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