You may have heard the term “blockchain technology” before, in related to Bitcoin and other cryptocurrencies. In fact, blockchain technology is such a critical element of cryptocurrencies that, digital currencies like Bitcoin cannot exist without it.
The Blockchain is a technology based on the virtual digitized decentralized network with “blocks” of information. When you add any information to the network, the data is essentially added to all the devices in the said network. But if another user in the same network adds his / her information, a new block is created after yours, making it impossible for you to modify your own block. However, you can edit your block if and only if you make the edit from all computers in the network. This makes Blockchain one of the best technology for saving and structure information in the most secure manner.
Here are 5 reasons why this evolving technology will benefit you:
1. Transparency
Blockchain Technology is an open source tool. It means that other users of the network can read and confirm (or un-confirm) the information. The great thing of being an open source technology is that it can’t save logged data without the majority of Blockchian network users.
2. Decentralization
Next prime blockchain reason is lack of a central data hub. Instead of running a massive data center you save your information in decentralized net, where any user can read, check and (un)authorize any of your actions.
3. Faster transaction settlements
Blockchain technology works 24 hours a day, seven days a week, which means blockchain-based transaction process is quicker.
When you send a transaction to traditional banks, it’s a common thing for transactions to take days to be completely settled. This is due to protocols in bank transferring software, as well as the fact that financial institutions are only open during working/business hours, five days a week. You also have financial institutions located in various time zones all around the world, which delays processing times, but that is not the case with blockchain.
4. User-controlled networks
This advantage is rather a consequence of the decentralization of the network. Instead of holding a third party for data processing, stakeholders decided to control each other and decide what to do next. For example, the inability to achieve 80% consensus on the update, tied to the bitcoin block, lies in the fact that more than four months ago it was necessary to develop a plug into two separate currencies (bitcoin and bitcoin in cash).
5. Reduced transaction costs
As you remember, blockchain allows you to execute transactions without the need for a third party, which is often a bank or a central server. Since the intermediary is absent, then you do not need to keep it, which allows you to get rid of impressive expense items.
Considering the above-mentioned arguments, it is evident that Blockchain Technology is a very reliable and secure inevitability to any business.
