With the current hype around Blockchain and Defi (Decentralized Finance) ecosystem, everyone’s ear is itching to hear what this new technology has to offer to humanity.
Today, I will be explaining the 4 core benefits of Blockchain Technology to the tech world, organizations, and the world at large in the best way possible. So, stay tuned.
Benefits of Blockchain Technology
Among the core attributes of Blockchain Technology is transparency.
Taking the Bitcoin Blockchain as an instance, all transactions done on the network are publicly stored on the Blockchain explorer, and available to anyone who cares to see.
Now, bringing this to the organizational setting, auditing has always been a major problem. Companies have gone into bankruptcy just because of this problem.
But, Blockchain Technology is proferring a solution, whereby, all transactions happening in the company could be stored on the Blockchain. And, available to employers and employees depending on your level of authority. Wouldn’t this be great?
From the inception of all kinds of technological innovations, security has always been a problem and cannot be overemphasized.
The Blockchain is built in a way that prioritizes security as its major aim. And, Immutability is one of its core attributes. Let’s see how this is achieved.
Still using Bitcoin Blockchain as a case study, if James sends Xbitcoins to Elena, a group of miners who are special kinds of nodes on the network, races to validate this transaction.
Firstly, they check if James has up to X bitcoins on his wallet along with other transactions happen at the same instance and they are all added to a block. Then, they race to solve a mathematical puzzle that shows that they actually validated those transactions. They broadcast their results to all other nodes in the network including the other miners. If up to 51% of them agrees to the result, the block is added to the Blockchain and encrypted into a hash
Now, once the block is added to the Blockchain is becomes permanent. Even the miners cannot alter it.
Isn’t this secure? Although you might argue otherwise that this isn’t secure but this is definitely ten times more secure than our traditional security models.
In the conventional business world, a storage system with high security achieves this at the expense of speed.
Take, for instance, trying to create a bank account; you have to go to the bank several times, submit documents, and so on.
But, using the Blockchain, Imagine sending bitcoins. All you need to do is create an account in less than 5-minutes using a Bitcoin wallet, buy bitcoins using your credit/debit card, Then, boom!!! you’re all set to make transactions on your account. Isn’t this great?
Data Authencity and Integrity
The Blockchain offers a system where credibility is all and all.
With audibility and security as major benefits of Blockchain Technology, data integrity and authenticity will be perfectly achieved.
With the aforementioned Benefits of Blockchain Technology, you may think this technology is somewhat perfect. But, no, it’s not. Rather, it’s better than all forms of storage currently available (at least for me).
I hope I have been able to highlight these benefits in an understandable manner.
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