Last updated on December 9th, 2022 at 06:33 am
All the buzz behind Bitcoin and its profits have made it hard to stay away from doing your research regarding cryptocurrencies and the blockchain technology. Bitcoin was sold at a mere $1 each back in 2011. In the year 2017, the value of each Bitcoin was well over $16,000, all thanks to the world of blockchain and cryptocurrencies.
The blockchain merely is a public digital ledger that records transactions of cryptocurrencies in a transparent yet secure manner. It uses a decentralized environment which means that there are numerous networks of computers that hold interlinked data which is owned as well as run by the users themselves.
Also Read: Future of Blockchain Technology
What are the advantages of BlockChain technology?
Transparency
As opposed to a banking system where no user is allowed access to another user's transactions, the blockchain technology allows all users across the globe access to view another user's operations. Transparency leads to 100% transparency of sales on the portal which ensures that no user can alter or delete any transaction without another user noticing this event.
Security and Reliability
Since the blockchain networks are decentralised, there is no central point of failure in the system. Loyalty means that there are no weak points in the net from where any information can be hacked. This also prevents any malicious attacks from occurring, thus improving the overall reliability of the network. Apart from this, every blockchain transaction has to be digitally signed through a shared public and private key. These keys use different cryptographic schemes which make sure that any transactions are entirely encrypted. Thus, connections established are 100% secured.
Accurate Accounting
Since the blockchain network is a virtual network, recording sales and keeping a tab on them are also done virtually. This process is free of human interference, which increases its reliability. Any record that is passed from one blockchain to another is verified at every step to ensure that it is as accurate as can be. Processing these records on a digital platform also provides that a traceable audit is left behind in case of any discrepancies. Another advantage is that since all records are maintained under only one registry, the integrity of the financial records of any organisation is also guaranteed.
Quality Assurance
In case there is any irregularity or inconsistency detected along the supply chain, then the blockchain network will lead you to the origin point of the defect. This not only helps determine the starting point of the error but also cuts down on time required to carry out the necessary investigation. An excellent example of this concerns the food sector. Here, tracking of origin and bath information are incredibly crucial to ensure that is food is safe, and quality assured. In such a scenario, blockchain plays an important role.
Use in Applications such as Stock-Exchange
Since blockchain is a secure and reliable system which allows users to process transactions transparently, stock-exchange organizations are now considering block-chain technology for its commodity trading operations. In the year 2017, a start-up in Australia called "Digital Asset Holdings" started working on a system that is powered by the block-chain technology for stock-exchange in Australia.
Traceability
Another advantage of the blockchain technology is that not only is it cost-effective but it is also easily traceable. Thus, in the case of supply chain management, blockchain can be used to track the origin of goods their quantity as well as the movement of these said goods. This leads to an improved level of transparency between business ecosystems while simultaneously simplifying production processes.
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