5 Benefits Of Blockchain Technology

Blockchain is one of the latest technologies which is due to the popularity of Bitcoin. Soon after the popularity of Bitcoin, blockchain came to the surface, and due to the many advantages of blockchain, many businesses started to research blockchain to adapt and apply it to their mainstream businesses. Recently, Spotify acquired a blockchain start-up, which is called Media Chain Labs, to develop solutions based on decentralized databases and connect their artist and license agreements with their tracks on the platform.

Blockchain also has a high probability of applying in real estate businesses to track documents with security.

Now, let’s look at the 5 advantages of blockchain technology.

Security:

blockchain is one of the most secured flat forms for the Record Keeping system. The transaction can only be updated or modified in the chain network if the majority of the nodes are everyone accepting the modification of the document. When a transaction is approved in the blockchain, it’s encrypted and linked to the previous transaction. Hence, no one can alter the record without knowing anyone else in the chain. Any industry that needs to protect sensitive data such as Healthcare Financial Services and many more can use this blockchain technology to enforce security.

2. Increases Efficiency:

Implementing this technology in a business can improve its efficiency in general aspects. Blockchain technology and streamlines many tasks. Thanks to smart contracts, transactions can be made directly between two participants without involving any third party or intermediate to perform the transaction. It is always sure to have full assurance on both sides to meet all of the agreed terms. This significantly takes place on operating expenses. This way of documenting also reduces human errors.

3. Reduced Costs

Inheritance of blockchain can cut costs for organizations. It optimizes transaction processing by reducing manual tasks such as gathering all the data and simplifying auditing processes.

A huge lump of money can we save by eliminating the middleman. As documenting, reporting, and auditing can be a hefty process, vendors who provide the services charge a lot. However, some experts say blockchain is more expensive than any other alternative. Mainly because of the substantial investment in computing resources it requires.

4 Greater Transparency:

Before blockchain technology was introduced, every organization relied on paid third-party services in order to keep track of their documents and databases. As no humans are prone to errors illegitimate practices can happen among that third-party service you found that easily. Blockchain uses distributed ledger, data, and transactions recorded in multiple locations, which means the information that is stored can be found in multiple places that cannot be altered easily. All the participants who are there in the network with proper access can see the same information at the same time, which provides full transparency. All the participants can see the records with date and time stamps. therefore, members try to change the record. The record can be seen by all of the users in the network. Let alone updating the record, every operation that has to happen on any record needs the permission of the majority of the members of the network. This physically and virtually eliminates any opportunity fraud practices.

5. Automation:

The purpose of blockchain is to be used for smart contracts. Automating these smart contracts can increase speed and efficiency even further. When the conditions that are pre-specified are met, the next step of the transaction or specified processes is triggered automatically. These are automatically human interventions as well as dependence on third parties to verify the documents and check if the conditions in the contracts haven’t been met.