Estimated reading: 3 mins

Chain Gang: Blockchain Benefits For Every Industry

Blockchain technology has surged into popular consciousness as Bitcoin has ascended into a global cryptocurrency challenging mainstream financial players. Many cryptocurrencies benefit from blockchain technology. However, crypto isn't the only industry that can benefit from implementing this powerful tech.

Anywhere you can find a global supply chain, blockchain technology can smooth the flow of resources and data. Professionals in a diverse range of industries, from healthcare to logistics, are increasingly discovering that blockchain can disrupt traditional technologies and give organizations an edge in competitive markets. Let's take a look at blockchain's benefits that can be obtained in every industry.

1) Improved Transparency

In essence, the blockchain acts as a shared ledger. Basically, it maintains an effective history of every transaction that has taken place within its sphere. This means multiple copies of transaction certificates don't have to be issued to the relevant individuals, as sharing data this way is a time-consuming task that's fraught with errors. Everyone involved in the organization can have local access to a distributed ledger of each transaction.

Data published through the blockchain is sure to be accurate and transparent. Because updating the transaction history requires a consensus and will impact every subsequent transaction, trust within your organization is improved.

2) Superior Security

Blockchain is at the heart of digital currency for several reasons. Its impenetrable security is a primary reason why it's a trusted resource in this financial industry. Indeed, many other organizations can benefit from this level of data security.

As a record-keeping system, blockchain isn't vulnerable to rogue edits and adjustments. A transaction taking place within a public blockchain network has to be agreed upon by all parties. Once this takes place, it's linked encrypted to previous transactions. This creates the chain-structure, where an interlinked network secures the integrity of every transaction recorded therein. Industries that deal in sensitive data will find blockchain data's secure systems especially appealing. Everyone from government organizations to medical groups can implement blockchain for a secure, encrypted transaction.

What I think blockchain technology looks like
Photo by Markus Spiske on Unsplash

3) Greater Traceability

Where organizations rely on a complex supply chain, layers of transactions can build up to create increasingly opaque logistics pathways. Trying to track an item's history can prove borderline impossible, as human error and patchy record-keeping generate a sort of entropy of data.

Because each transaction within the blockchain is inherently linked to those preceding it, any exchange recorded within blockchain creates a traceable trail that you can quickly follow back to its source. This profoundly simplifies asset management and fraud prevention, as these tools are effectively inbuilt into blockchain technology.

4) Efficiency And Speed

Physical record-keeping is bulky and inefficient for a variety of reasons. Filling out forms, file management, and the way errors creep into these systems makes traditional recording methods excessively inefficient. Transitioning to the blockchain can enable companies to automate these business processes. This transition will simultaneously speed systems up and reduce data handling errors.

Blockchain record keeping enables all users to access a shared ledger. Without multiple logs and duplicate records, distributed ledger technology allows documentation to be streamlined, and errors are reduced. With everyone on the same page, settlement can be reached with fewer intermediaries as the blockchain inspires trust in a transaction.

All the papers that are saved by using the blockchain
Photo by Christa Dodoo on Unsplash

5) Cost-Effective

Of course, organizations would not be flocking to the blockchain if it wasn't cost-effective. Reducing costs is a vital tool for remaining competitive in increasingly challenging economic conditions. Any industry looking at implementing blockchain technology benefits from the reduced cost of running a blockchain network compared to traditional technology.

Blockchain enables organizations to automate processes in record keeping, saving money and time. Additionally, providing a secure platform for trading means businesses can interface directly with confidence and reduce the need for intermediaries in financial transactions.

Blockchain As A Service

Implementing blockchain can seem like a complicated task, but the emergence of blockchain-as-a-service providers (BaaS) is radically simplifying this technology. BaaS providers enable the integration of blockchain technology - and the leveraging of the diverse array of blockchain's benefits - in established business models. The benefits of blockchain technology are profound in all industries. If you're interested in efficient transactions, transparent and traceable chains and second-to-none security, then exploring blockchain will be a priority for your business. Organizations across all industries need to leverage current technology to improve operations. Blockchain could be the next step for your business.

Two bitcoin, chilling on a wall
Photo by Executium on Unsplash

About the author:

Michael Dehoyos is a writer and editor at Academic Brits. As a coder, he's interested in cutting edge digital developments and their application to businesses. He seeks to demystify technological advances for a wide audience.


The above references an opinion and is for informational purposes only. Do not take this as personalised financial advice or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.

Last updated: 12/03/2021

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