An article on Business Blockchain HQ introduces blockchain fundamentals and characteristics that make blockchain technology unique.
What is a blockchain?
Blockchain is a peer-to-peer distributed ledger technology that securely and immutably records transactions between parties in blocks. Blockchain provides a trusted, accountable, and transparent environment for intermediaries. It makes the necessity to validate and record transactions defunct.
What are its components?
- Shared ledger – distributed and decentralized ledger
- Permission – certain blockchains are permission-ed and others are not
- Cryptography – coded message
- Consensus – two or more parties’ agreement on the state of data on the system and its synchronization on the blockchain
- Smart contracts – the programs stored on a blockchain only run when predetermined conditions are met.
What are the benefits of blockchain technology?
Blockchain is revolutionizing problem perceptions. The benefits of blockchain are closely related to the components of a blockchain. The benefits of blockchain include:
- Improved transparency
- Blockchain allows the application of a total decentralized network. Since there is no centralized authority, the system’s transparency is greatly improved.
- Stronger security
- In comparison to other platforms or record-keeping systems, blockchain technology uses advanced security measures.
- Cost-effective
- Since blockchain does not have a centralized authority, it cuts costs in lieu of 3rd party vendors.
- Tangible traceability
- Blockchain technology enables every party to trace goods, ensuring supply chain transparency.
- Markedly speedy and efficient
- Blockchain saves time because it automates processes and maximizes efficiency while eliminating human-based errors.
Using blockchain technology has many advantages:
- High-level security. Hence, better protection of business processes
- Reduced hacking threats
- Faster and more transparent transactions that are easily tracked
- Automation of account reconciliation
Blockchain is a cutting-edge technology that is impacting every industry enormously. Some of the main industries benefitting from blockchain despite their differences are:
- Energy sector
- Real estate
- Trade finance
- Government
- Healthcare
- Logistics
By now, you would be well-informed about blockchain’s features, benefits, and advantages. When you enroll in the Blockchain Essentials certificate offered by Genashtim, in collaboration with eCornell, you can better your business processes by enabling you to analyze and understand how blockchain works.
eCornell courses are approved by SkillsFuture Singapore for SkillsFuture Credit as well as by HRD Corp Malaysia under its SBL-Khas Scheme.