The blockchain technology represents basically a highly distributed and openly verifiable database that can be accessed anytime anywhere on the web. It offers unmatched data security since each entry is cryptographically presented allowing no deletion and alteration once a data is entered. It can contain any time of information with all the intricate details including time stamps. This typical ‘Write Once’ database allows quick paced and real time transactions without needing intervention of any third parties.
Understandably, Blockchain is poised to become the technology for the future of business world. How Blockchain really benefits the enterprises in general? Well, let us have a look at some of the distinct advantages.
- Huge Cost Advantage
In any business, when a trade happens on both sides due to lack of transparency or due to lagging time in processing information there is always the question of inefficiency. Blockchain is a conclusive answer to such difficulties and process errors in transaction. By keeping separate records of an event and all pertaining obligations and conditions of business transactions, Blockchain does not leave any scope for non-transparency and this efficiency in the long run reflects in huge cost advantage thanks to faster processing and transaction.
- Faster, Smoother And Error Free
Blockchain works with mutually distributed ledgers with all contacts and their respective data sharing space with each other. Now all these contacts coming into business contract in each transaction just can do away with the need for intermediaries. This facilitates direct transaction maintaining fast pace and smooth operation. Blockchain is error free since each of the transaction data remains open can be changed with new entry while the previous record is kept intact.
- Numerous Ways Blockchain Is Benefiting Financial Businesses
All the interest in Blockchain from the industry stalwarts of financial sector is not about the same technology that made Bitcoin possible. But rather, every one of them wants to know in which specific way Blockchain can really benefit their business. Do all it’s features are relevant for the present context of banking and financial industry? Maybe not, but the core features like the distributed and shared database with cryptographic data to maintain an optimum security beyond the reach of any hacker intrusion, is probably the biggest draw for most industry stalwarts to take an interest in Blockchain.
Recently some banks are experimenting with the technology about making the smart contracts feasible for many of its transactions like the issuing of credit finance, providing bank guarantees for certain types of loans, etc. Some other banks are also experimenting with internal currency based on Blockchain technology to deal with counterparts risks in transaction with local banks.
To conclude, the promise of Blockchain is still not fully realised and there is a long way to go before we can conclusively say that it has become a driving force for business transactions of all sorts. But as the businesses and businesses transactions are increasingly becoming digital in nature leaving hardly any trail of paperworks, a further consolidation of digital data and business processes within a shared and tamper proof database like Blockchain seems obvious in the time to come.