What is Blockchain?
The blockchain is an open and distributed ledger. It can record everything of value on a business network. New transactions and data can be added but past data cannot be erased. The recorded data is permanent in nature. This has eliminated the possibilities of faking documents and tampering of data.
Every business finds it difficult to maintain records. If not done in the right manner, these records will contain errors that can impact the working of the business. But with Blockchain Technology, the industries are experiencing a transformation in the way they do business. The importance of maintaining these records is to track the performance and plan for the future. Think of the times when transactions are executed in not time but settlement takes a lot of days. This happens because each party has to maintain a ledger and do not show them to each other. These records take a lot of time to create.
Blockchain technology is transforming the way we do transactions and maintain records. The transaction, verification, and recording are done within no time. The ledger is distributed and the data is stored permanently across a plethora of nodes. across a plethora of nodes across the system.
Information that these blocks stores are-
- Blocks store information about transactions like the data, time, and amount.
- They store information about the person who has made the transaction and the person who has received it. It records the digital signature of the person and not the full name.
- These blocks store a unique code called hash that distinguishes them from one another.
As shown in the infographics, blockchain technology has numerous benefits. Let’s unfold all of them.
The transactions enjoy transparency because of the distributed ledger. The records are shared by everyone and any change in the record will require the consent of everyone. Also, a change in one record will make the changes in all the records of the entire network. This is why blockchain is transparent and reliable.
The blockchain is secured because the transactions are approved, encrypted and linked to previous transactions. The hackers cannot take advantage of the data because of the information stored across a network of computers and not on s single server. They are protected from any kind of fraud and unauthorized activity.
The supply chain is complex. Blockchain technology has made it traceable. The number of assets can be recorded, the authenticity of a product can be determined, goods can be linked to bar codes, and the information about the delivery of the products can be shared with suppliers.
Increased Efficiency and Speed
With this technology, the transactions can be done efficiently. There is no paperwork required and no involvement of intermediaries. There is no scope of errors as the records are maintained using a single digital ledger and shared among others. The trust factor is maintained and the settlement can be done much faster.
Since blockchain eliminates the role of a third party. The blockchain is a game of playing with data. You just have to trust this game. You are not expected to review the documentation to complete the trade because it can be accessed by everyone.
With the great potentiality of a blockchain, the industries will soon be disrupted. This will create a need for blockchain professionals who are certified. Certifications increase the credibility of the professionals and they are able to work with the top companies. In order to make it big in the industry, get certified!