A blockchain acts as a data center. It’s a digital ledger containing electronic dealings which can’t be changed. Created originally for Bitcoin, blockchains provide smart solutions for companies today in a variety of sectors. Using it as an enterprise solution impacts businesses in many ways, such as:
Improved safety and security
The network & infrastructure requirements of companies today make it necessary to find secure methods for flash storage of data and cloud computing. Data breaches can result in the loss of vital data and negatively impact the credibility of an enterprise. Blockchain technology ensures that all transactions are encrypted, and data is stored on a variety of computer networks at various locations, offering greater security. The special digital fingerprint encrypted is called a hash, which makes the system tamper-proof.
Since everything is clearly recorded through this technology, transparency in business operations is enhanced. Fudging of data is not possible as any edits/changes require the approval of the entire network. Such transparency also makes it possible for references to be made easily in the future as every transaction is recorded.
Lower costs for enterprises
The elimination of middlemen as 3rd party keepers of trust can result in lower overhead costs for businesses with the application of blockchain technology as this digital ledger helps in maintaining records of all transactions without the need to rely on a middleman.
Improved automation and efficiency|
Multiple processes and business operations can result in extended hours of work, increasing costs, and the risk of human errors. “Smart contracts” can be relied upon with the use of blockchain wherein, self-executing computer programs administer contract terms as decided upon by the creator. A cryptographic code is used to enforce such contracts, which become actioned automatically. This helps to reduce delays and promotes accuracy of operations, making sure both parties involved have access to transactions. Apart from more efficient operations, it also results in automation of enterprise operations like shipping and purchasing, which saves time in the long run.
Tracking of supply chain.
ICT can’t help to keep track of the supply chain of a business and this is where blockchain comes in handy. Blockchain technology helps to promote transparency and keep track of supply chain so that products can be tracked right to their source for solutions to be devised in case something goes wrong along the way. Ethical sourcing decisions can be made and records can be kept to show stakeholders as well as investors.
The benefits of blockchain will help to revolutionize various industries, including healthcare, e-commerce, insurance, customer service, and B2B accounting, to name a few. Blockchain technology is also crucial for realizing the benefits of a smart city that has smart energy and other services.
Last modified: December 29, 2020