Blockchain, or as we could call it an immutable digital ledger, has been around for more than a decade. Since the beginning, it has been linked to cryptocurrencies and financial transactions. However, it didn’t take long for it to become one of the most revolutionary technologies of the century and begin to change various industries. Besides the finance sector, blockchain technology is also transforming health, food, fashion, education, and many other industries around the globe. Although many sectors are enforcing it, some people are still skeptical about this innovation.
As mentioned, the mistrust of blockchain began with cryptocurrencies. For many people, blockchain technology is some vogue novelty that could cause the rise of a black market and crime. However, the attitude towards blockchain is rapidly changing, and many innovation leaders are implementing it for their brands. In this article, we will highlight the benefits of an immutable ledger and discuss how it can improve your business.
What Is an Immutable Ledger and Where Is It Used?
Untamperable, immutable, distributed… Most of these names describe blockchain technology. Perhaps, many of our readers are familiar with the concept of blockchain. To those who have heard this name but still aren’t sure what it means; blockchain is a distributed ledger that tracks all transactions and registers them on digital blocks. Each block contains a unique code called hash, which is formed based on the previous block’s hash and any new information entered into the new block. Doesn’t sound that complicated, right? Well, it is pretty perplexing, but in this article, we will focus on the blockchain benefits instead of diving deeper into its concept.
In 2017 the blockchain market was worth $708 million. Experts forecast that by 2024 it will reach $60 billion. Such market giants like IBM, Walmart, Microsoft, Mastercard, Huawei Technologies are successfully implementing blockchain to their daily business operations. The whole picture changes when well-known brands begin to rely on technologies which were previously rated negatively. Thus, if you are also considering using this revolutionary technology, you have to understand its prosperity.
Blockchain and Benefits
- Blockchain is secure
We mentioned that blockchains are distributed ledgers which means that no central point of authority controlling it. Therefore, whenever hackers try to compromise data, it’s almost impossible to do it when it’s managed with more than two nodes or servers. Moreover, each action made on a digital ledger is encrypted with a unique hash code, and the majority of the nodes have to agree upon the action. That ensures a free and transparent flow of data and protects information from being corrupted.
- Blockchain benefits for supply chain
Supply chain management has been on the spot for several years. The process of exchanging goods takes a lot of responsibility. While transporting items, they can be easily lost, stolen, changed or damaged. With that in mind, many logistics companies are experimenting with blockchain. By using blockchain technology, interested parties can quickly share data. Furthermore, even the slightest inconvenience during a shipment would be registered. A digital ledger can increase security by enhancing transparency and traceability of goods.
- Blockchain ensures products are authentic and high quality
Digital ledger blockchain is praised for its high security and traceability levels. These features play a central role when it comes to fighting the fraudulent market. Each year counterfeit goods cost billions to authorized brands, but blockchain could be the revolutionary solution. How does it work? By registering items on the system, manufacturers could provide the necessary information to their customers about the product’s origins, historic records, current and previous owners. By tagging assets on a blockchain, buyers could know if the item is authentic.
- Blockchain has high levels of privacy
Information which we put online is always sensitive to outside harm, such as hacks, leaks, and personal threats. We usually treat our private data as it can’t be easily compromised. However, blockchain is different from a standard database, and thereby it ensures better privacy for its users. It is anonymous, and each user is hidden behind encrypted codes. It is relatively impossible to detect a user’s account information. Nonetheless, the privacy levels depend on a particular blockchain and its security features.
Blockchain benefits and challenges brands to transform the business landscape and develop new methods of distributing goods and information. In this article, we discussed only a few benefits of this revolutionary invention, yet many to discover. However, as more industries and brands begin to use blockchain, the stigma around it fades. With that being said, by using blockchain we could solve many security, authenticity, and traceability issues.