In the previous post, we have mentioned that blockchain is a decentralized, digital public ledger for all cryptocurrency (digital currency) transactions. All information are recorded in chronological order, stored in blocks and the stored data cannot be erased or edited. Thus, creating a secure system. So, the question is, should companies use blockchain?
Here are 5 reasons why companies should integrate blockchain technology into their systems:
The beauty of blockchain’s distributed ledger is that users can access to all information and transactions. Any changes to the blockchain are accessible to everyone within the blockchain. Thus, all data is accurate and consistent throughout the system.
Blockchain does not rely on one central server for saving of information. In fact, every member within the blockchain is part of the entire network and can save the information from the blockchain on their own devices. In this way, information won’t be lost.
3. Secure system
All members using the blockchain are able to make and verify transactions without an intermediary, thus, reducing the risk of unauthorized involvement. Furthermore, as a decentralized network, it is difficult to change any data within the blockchain. This reduces the possibility of remote hacker attacks and creates a secure system as a whole.
4. Faster Transfers
Bank transfers, especially interbank transfers, can take up to several days for clearing. With blockchain, transactions can take place 24/7 instantaneously, hence, allowing for faster transactions and saving time.
5. Lower Transaction Costs
As blockchain eliminates intermediaries from transactions, it is more efficient and cost-effective as transaction costs are lowered.
In A Nutshell
Like all technology, blockchain is not without flaws. However, the above five benefits of integrating blockchain into business processes outweighs the cons. Using blockchain improves efficiency and lower costs for a company. Other than finance and banking industries, organisations trying to accomplish a secure system such as healthcare, manufacturing and entertainment industries can benefit greatly from blockchain integration.
All information in this article is correct to the best of our knowledge and belief at the time at which the article was originally published.
This article was written in the author’s personal capacity. Any opinion expressed in this article are the author’s own and
do not reflect the view of Vivaz Capital Pte Ltd.
Vivaz Capital, a subsidiary of Vivaz Group Holdings Pte Ltd, is a private marketing and consultancy firm, headquartered in Singapore.
We market and bridge opportunities across Asia.