The blockchain is more like a digital ledger to store financial transactions as a ledger that contains what goes in and what goes out. Unlike the traditional ledger, the digital one is much broader and more secure, with no intermediaries involved.
In Blockchain, each block contains, among others, a cryptographic hash of the previous block along with the transaction data. It can be used by two parties to record transactions securely and permanently. It is managed by a peer-to-peer network and allows the secure transit of digital information.
Why is Blockchain the latest revolution in technology?
Blockchain technology was originally designed to deal with Bitcoin, but now it has become the talk of the town, a revolution. During its initial stage, the technology faced heavy criticism and rejection, but after careful review, it turned out to be more productive, more useful, and more secure. It has now become a convenient way to store data in digital form that is reconciled from time to time.
Let’s take a look at some of the benefits:
Authenticity: Information is stored in blocks which are then stored on the Blockchain which cannot be controlled by a single person or identity. It simply means that there is no or very little chance of failure and the technology can serve as a trusted space for a business transaction.
Transparency: Tech experts claim that Blockchain technology is fully transparent. Since blocks are recorded and added in chronological order, participants can keep track of transactions very easily and without the need to keep records.
Quality: In the event of any irregularities, a Blockchain system makes it easy for stakeholders to investigate any issues as the system can trace them back to their point of origin. Quality assurance makes it an ideal technology for industries where origination and other crucial details need to be tracked.
No Tampering – Since transactions and records are verified each time they are passed from one block to another, there is less or no chance for error. The precision of the process protects the data from tampering, making the technology more user-friendly and efficient.
Agile: In the age where time is money, Blockchain can play an imperative role in enabling faster transactions. As the system does not require a lengthy verification and authorization process, it can be used by different industries to close deals quickly.
Cost savings: Last but not least, Blockchain is a cost-effective technology because it does not involve any third party. It makes the system ideal for both startups and established organizations.