Blockchain, one of the breakthrough discoveries of technology has been evolving tremendously since the introduction of Bitcoins in 2008. Bitcoin would not have been a reality without Blockchain supporting its back. But with time, Blockchain technology has proven it’s worth and paved its way to other areas besides Bitcoins.
Today, the importance of Blockchain in enterprises is greatly being realized by entrepreneurs. It promises numerous opportunities and benefits with its decentralized and transparent nature. Listed below are some of the important advantages offered by the Blockchain to enterprises:
1. ENHANCED EFFICIENCY:
Blockchain technology does not require any intermediaries. Fewer intermediaries imply faster processes and tasks. When one employs too many personnel at a functional system, it tends to get delayed due to the lack of coordination between them. This issue is eliminated in the case of Blockchain technology. Moreover, the decision-making process gets faster as fewer people are involved.
2. IMPROVED DATA SECURITY AND PROTECTION
Data on the Internet, face the highest risk from hackers and other malware attacks. This severely harms the sensitive customer data and other business-related data of an enterprise, which ultimately results in major losses. Blockchain is one of the best ways to protect data from unauthorized actions because of its immutable and incorruptible nature. It is one of the safest payment options on the Internet.
HOW BLOCKCHAIN ENSURES SAFE PAYMENT?
While conducting payment functions on Blockchain, each party has access to the entire database and history of the transaction. There is no control of a single party over any information. Hence, every party is entitled to verify the records of its transaction partners directly without any need for an intermediary.
Transparency is yet another important benefit of Blockchain. Lack of transparency among trading partners often results in delayed commercial activities and hampered business relations/trust. When complete transparency is maintained, trade relations get strengthen resulting in healthier business dealings.
4. REDUCED COSTS
Not all businesses are financially sound. While some might not mind incurring a higher cost on technology, some might have huge financial constraints. Since Blockchain involves fewer middlemen in addition to less documentation procedure. This, in turn, results in reduced costs on the part of the enterprises.
Blockchain is extremely beneficial in tracking goods forwarded in a supply chain. Each time the exchange of goods is recorded in the Blockchain ledger, an audit trail is presented to trace the source of the goods. Thus, it ensures higher traceability and helps in verifying the authenticity of traded products.
6. IT AIDS IN BETTER AUDIT AND INVESTIGATION:
Since Blockchain keeps a sequential and indefinite record of every single transaction, it provides an indelible audit trail of goods, products, assets or information. If any irregularity is detected along the supply chain, immediate actions can be taken to reach the origin point and correct the same.