What is Blockchain Technology — How blockchain helps in your business?
If your work-life revolved around finance, banking or investment, you would have surely heard of the term blockchain. You might not know about this technology in depth. In this digitalization world, blockchain is being used in almost all major organizations.
This article will not only help you understand the incredible technology but also how blockchain development can boost your business in this competitive market.
First, let’s learn What is blockchain technology?
Blockchain is known as Distributed Ledger Technology (DLT) that uses decentralization and cryptographic hashing methods to create unaltered and transparent digital assets. As the name suggests, Blockchain is basically a chain of blocks but not in the usual sense. In this content, the block means digital pieces of information and chain as storage of public databases.
Blocks function to reserve every transactions’ data of your recent purchases from the site. Moreover, this technology assigns a unique digital signature and not use your actual name to record your purchase. However, each block is stored in the form of a unique code called a “hash” to distinguish every block from another. They use algorithms to create these unique cryptographic codes.
The main objective of this technology is to provide a transparent ecosystem and build trust for data exchange in the digital platform. So, you can use this technology to build trusted relationships with your customers.
Blockchain can be useful in the following different areas of business operations:
Supply chain management
Every business venture has this management department as an integral part. Whether it is a large, medium or small organization, it is crucial to have a proper and efficient supply chain. It helps you to smoothen the process of on-time product delivery, quality product delivery, and maintain a secure record of supply data. Integrating blockchain in the business allows you to have a transparent platform where your users’ data is correctly stored in chronological order in the digital ledger so that you can track this information anytime. IoT and Blockchain technology is used to make this entire system work with complete transparency and accountability.
Quality Assurance
Every business model needs to carry a quality test to provide the best to its customers. However, blockchain can help in ensuring that the product is value for money to the customers. When you combine blockchain ledger with your product, it is easy to track the entire journey of the product for people who are in the system and find if there’s any flaw. The users can also use Blockchain and QR codes to know the entire history of any particular product.
Smart Contract
Blockchain applications can be beneficial for smart contracts too. When you want to transfer money, it takes several days after signing the agreement. But, blockchain makes this task easy. They create some pre-programmed contracts which include an agreement by the two parties on the said terms and conditions. After covering the conditions, the smart contract is activated to execute the transaction of money. The biggest advantage here is that you don’t need to wait for the third party’s approval. This system becomes full-proof with no interference from any third party. Also, it saves time and cost which goes into validation and verification of the transactions.
Data storage and security
Security is one of the key factors any user will look for before providing their personal information. Nowadays, most of the business has gone digital, so the need for a secure platform has also risen. Many people still hesitate to use digital technology due to the fear of misuse of personal data. But, with the innovative strategy of blockchain, their personal details are secure and companies can provide better user experience to customers.
It is extremely difficult for hackers to hack the system and alter any data as private blockchain stores data cryptographically which ensures complete data security. Moreover, a block is created for every data and added to the ledger. These ledgers are connected like a chain to one another so in case of any alteration even in one block will affect other blocks too. This makes it easy for anyone to track changes and no one can change so many blocks in one go to alter the whole system.
Conclusion
Irrespective of your industry type, blockchain is crucial to integrate better operations and provide better services to customers. Blockchain will not only create a transparent platform but will also help you to build long term relationships with your customers. The above-mentioned list will be helpful for you to understand how it will be helpful in respective businesses. However, it is advisable to understand in-depth about how it will be useful in your particular industry as blockchain apps for different industries are different.
