What is blockchain technology and how can it benefit businesses – MKFM 106.3FM

Of the many technological advances in recent decades, Blockchain technology is one of the few that has the most potential to revolutionize businesses across all industries.

And although everyone has heard and read about Blockchain, not many people understand the concept clearly.

What is blockchain technology?

Simply put, Blockchain is a distributed database within a business network that enables the secure sharing of data. This method of recording transaction information in a “ledger” makes it nearly impossible for the system to be hacked or modified.

While Blockchain technology is most often associated with cryptocurrencies, it has many use cases beyond Bitcoin. Based on their requirements, businesses can use different types of blockchains from the following:

• Public Blockchains – These are open, decentralized networks of computers available to anyone who wants to request or validate a transaction.

• Private Blockchains – These are centralized, closed networks that require administrator permission to access.

• consortia – Also called Hybrid Blockchains, these are made from a combination of public and private blockchains.

• Side chains – These blockchains run parallel to the main chains and offer better scalability by allowing the movement of digital assets between two different blockchains.

Benefits of blockchain technology for businesses

Blockchain has enormous potential to transform the way businesses operate and manage their transactional data. Although not yet frequently used in all industries, the time when Blockchain becomes an integral part of all businesses is not too far off.

There are several benefits of Blockchain for businesses, making it the hot, must-have technology to invest in. Below we discuss some of the main benefits of Blockchain for businesses and why they should integrate it:

The recording of transactions in the Blockchain is immutable, with end-to-end encryption, which prevents the risk of fraud and malicious, unauthorized activity. Blockchain data is also difficult to hack as it is stored over a network of computers instead of conventional servers. Also, Blockchain requires permission from administrators to gain access, which limits the risk of security breaches.

Blockchain technology can help businesses save money on vendors and third parties that help process transactions by doing most of the work themselves. It also reduces reliance on manual reporting and auditing processes and the aggregation and modification of data.

Blockchain has a unique ability to track a product or service from the recorded information in the ledger. This enables businesses to better manage their inventory and identify products that may need to be removed or restocked.

Data once entered and recorded in a blockchain cannot be changed in any way. This ensures simple and secure data tracking as there is no possibility of changing information at any time. It also makes audit processing fast and more efficient. Furthermore, Blockchain gives users full control over their digital data, how and with whom they want to share it, and for how long.

Although businesses from all sectors can adopt and make the most of Blockchain technology, some industries may benefit more than others. These include banking and finance, energy, healthcare, not-for-profit, government and public sector, real estate, supply chain and retail, to name a few.

Technology is changing the way we do business, and companies need to keep up by adopting new technologies like Blockchain to enjoy the many benefits and gain a competitive edge.

To find out more about other such technologies and how they can help your business, visit Biztech, the official business and technology forum for Milton Keynes.