Section Four: Benefits of Blockchain
Benefits of Blockchain
- Speed and Efficiency: Making transactions using paper is a traditional process with chances of human error, and it sometimes requires a third party as a mediator. Therefore, it is a time-consuming process. By leveraging blockchain technology, transactions can be made faster and more effectively.
- Security: We are living in a data-driven world. It is essential to protect sensitive information. In this technology, your information is stored across a network of computers rather than a single computer or server, and that makes it extremely difficult for hackers to view or access your data.
- Transparency: Blockchain leverages distributed ledger, which means the transactions and data are in multiple locations. The participants on the same network can access the transactions and holdings of public addresses with the help of a block explorer.
- Immutability: Once we make a transaction and it gets recorded, it cannot be changed or deleted. The record of the transaction stays permanently. Therefore, blockchain technology can be helpful to track information in the long term with a secure and reliable method.
- Tokenization: Token is when the value of a physical or digital asset gets converted into a digital token recorded and shared via Blockchain.
- Reduces Cost: Businesses can reduce massive costs associated with third-party vendors. Companies do not need to pay for a third-party vendor as blockchain technology has no centralized player. Also, less interaction is required while validating the transactions.
The public chain maintains an immutable record of transactions. Anyone can publish a transaction and participate in the network by adhering to a set of published rules. The private chain holds a shared history of transactions. The blockchain is accessible only to permission, and administrators can edit transactions. Small or large corporate businesses can take advantage of public and private blockchains for storing confidential valuable data on-chains.