Blockchain seeks to establish a new paradigm for information and value exchange. From the early days of primitive bartering, economies have been advanced by efficient and practical networks. Within the framework of information technology, Blockchain will redefine our methods of data analysis and sharing, through advanced encoding protocols that are redefining our concepts of trust.
Blockchain is an incontrovertible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. It’s the first native digital medium for value. Blockchain technology provides a way for multiple parties to agree on a common version of the truth.
The blockchain is typically stored in immutable distributed ledger systems. It can also be stored in local file systems, though that may require some optimizations if privacy is desired. Blockchains are typically implemented as public, permissionless distributed ledgers with strong consistency guarantees.
Enterprise blockchain is gaining importance in areas where multiple groups require access to the same data, but each has a slightly different version of out-of-date information. This discrepancy burns the effort and time spent in managing and reconciling data. Since blockchain removes middlemen, ensures data security and transparency, it saves time and effort by automating processes. This saves IT and labour costs and helps businesses serve their customers better. They can enable new lines of business and expand their ecosystem of suppliers, partners and subcontractors.
Data integrity, built in security and its transparency is increasing the trust in blockchain technology. Being able to trust the system and do business with unknown parties will expand the markets, increasing demand for products and services. Moreover, blockchain transactions are immutable which eliminates data fraud and increases trust.
Bitcoin launch in 2008 put blockchain to real world application. Since then, big organizations and government agencies have started leveraging this distributed ledger system to implement newer business models. It is a decentralized ledger of transactions that allows fast and secure data sharing. Irrespective of the type of blockchain network – public, private or hybrid, businesses will benefit from it.
Banking and financial institutions benefit from blockchain implementation as it brings transparency, speed, the highest degree of precision and clarity to financial institutions. Insurance firms also use smart contracts to determine the occurrence or failure of the terms in contract to execute agreements and transactions between blockchain participants. In the healthcare industry, patient records consisting of sensitive information can be stored as electronic health records kept on blockchains. A close integration between medical service providers and insurance firms can also expedite insurance payments.
Not all but most governments across the globe have started to understand the importance of blockchain and what it has to offer. They can keep track of budget and finances and trace back every cent of funding and where it was spent. Corruption laws can be strictly implemented. Elections will be more transparent without any chances of fraud. The government can do electronic identity management for every citizen. In the manufacturing sector, it can significantly improve the supply chain logistics. The distributed ledger will enable transparent communication between suppliers, partners and internal stakeholders to improve business operations.
Blockchain technology is a disruptor of the existing models, but a lot has to happen over coming years. Its Revolutionary and with its use in enterprise applications it has the potential of replacing current methods of data sharing and transactions over digital networks.