The benefits of using Blockchain
The underlying technology that blockchain provides has a wide variety of uses and is now providing businesses with the opportunity to rethink their existing processes.
Blockchain technology allows businesses and governments to permanently record all transactions on a shared network. All data on the blockchain is immutable and only visible to participants that are invited to join the network. Therefore, blockchain helps ensure transparency and efficiency of the process of sharing information across multiple organizations.
Blockchain utilizes smart contract technology, which increases efficiency and speeds the process even further. As soon as the conditions of the contracts are met, the next step in the process is then automatically triggered. This ultimately reduces human intervention or error and cuts out the need to rely on third parties to verify that the terms have been met, therefore greatly speeding up the transaction process.
The use and implementation of blockchain technology can pose huge potential for the revolutionization of many different industries. Outlined below, are both several benefits blockchain can provide, as well as a number of different industries commonly seen using blockchain to gain the benefits that it can provide.
1.What benefits can blockchains provide?
- Additional Security - Blockchain can significantly change how information can be viewed. Blockchains contain encrypted, end-to-end records that cannot be altered. This ultimately anonymizes personal data to prevent access and increase privacy measures. Rather than information being on a single server, it is stored across a large network of computers, decreasing the risk for a security breach.
- Transparency & Trust - When a blockchain uses a distributed ledger, the transactions and data are recorded identically across multiple locations. This gives participants with access to the data the ability to see the information at the same time, therefore, providing them with full transparency of the chain. Additionally, these transactions are date-stamped and recorded, allowing the participants to view the entire history of the transaction.
- Increased Transaction Speed - In the traditional financial industry, blockchains can play an important role by allowing for speedier trade settlements, as it does not require third-party mediation. By streamlining the process with a blockchain, transactions can be completed faster.
- Simplifying Current Industry Models - Many current models in industries such as finance or healthcare are known to be disorganized at times. They often have multiple departments to maintain and run their own databases, and data sharing can become difficult due to having to manage contrasting systems. However, blockchain can act as a single shared ledger across multiple systems and can greatly simplify the model by reducing the complexity of managing separate systems operated by different departments.
2.What industries are currently benefiting from blockchain?
- Banking and Financial Institutions - It’s no secret that blockchain is already disrupting traditional financial institutions. Blockchain can provide faster and more efficient secured payment methods, as well as eliminating the need to continue on with old processes and paperwork.
- Healthcare - The current record keeping systems in place have commonly been known to be vulnerable to cyberattacks. A data breach in healthcare can ultimately result in significant financial losses to both practitioners and organizations. However, blockchain can be utilized by creating security protocols, providing encryption, and make for their decentralized data to become almost impossible to penetrate.
- Insurance - Insurance companies are now commonly using blockchain and smart contracts to streamline and automate manual and lengthy processes such as underwriting and claim settlements. Utilizing blockchain will allow for a reduced cost of claim processing and will increase contract efficiency.
- Supply Chain - In the supply chain industry, blockchain will allow buyers to have visibility into the source of the purchased products from origination to the end-user. In the event that any disruptions occur, this will allow participants to act sooner on resolving the issue. More specifically for the food industry, blockchain can help ensure food quality and reduce waste. For example, if a buyer receives contaminated food, blockchain will allow for the buyer to trace the food back to its source almost instantaneously.
It’s hard to deny that the use cases listed above prove that blockchain technology is on its way to becoming the future. Although the technology is still relatively new and at times hard to understand, the potential and benefits that blockchain can provide to these industries will become very hard to ignore.
If you or your team are having trouble filling your open blockchain roles, BlockTal can help! We specialize in assisting companies with hiring crypto and blockchain-specific talent. We have a team of dedicated recruiters that have extensive amounts of experience in building out high-performing crypto and blockchain teams. We believe that having the right talent for ground-breaking blockchain projects is crucial!
Please feel free to email me directly at ryland@blocktal.com to set up a meeting to go over your current hiring needs and strategies. We look forward to connecting!
