With the highly publicised rise of cryptocurrencies still fresh in the mind’s of business innovators around the world, the advantage of blockchain companies is being better understood every day. While the technology was originally touted as a game-changer for finance and banking instructions, it has also found a high degree of commercial utility when implemented throughout the supply chains of various types of industries.
There are lots of great reasons for a firm to start leveraging distributed ledger technology and become one of the many great blockchain companies that are thriving at the moment. Let’s take a closer look at some of the key benefits that blockchain companies regularly get to enjoy.
The most obvious benefit that blockchain companies get to leverage through their use of distributed ledger technology is that all parties that participate in the network carry and share information collectively rather than everyone sending and receiving self-contained copies. This open format means that the paper trail is impossible to obfuscate or tamper with, minimising the risk of malpractice taking place and going undetected.
Blockchain companies are far more secure than those who are not leveraging distributed ledger technology in a number of important ways. All transactions need to be mutually agreed before they are processed, and they are encrypted before being linked with transactions that have occurred in the past. This level of encryption and the inherent nature of blockchain companies (information is shared across a network and not hosted on one vulnerable server) mean that it is highly difficult for a criminal hacker to compromise the information pertaining to the transaction. It is here you can see how one of the main utilities of distributed ledger technology is how it can protect sensitive information from unauthorised or fraudulent access.
Of course, the robust and secure paper trail that blockchain companies leave behind when they carry out transactions. Since the ‘chain’ is secure against tampering, it means you can be confident in the accuracy of the information being presented when you investigate the history of a transaction. This makes tracing things a lot quicker since you can be more certain of the authenticity and chronology of materials you examine.
Traditional business systems are limited by having the use a lot of paper documentation which can slow down transactions, especially when they are being processed digitally. Having a paper element and a digital element to a business is counter-productive when they share information and blockchain companies enjoy not having to worry about this aspect. The digital ledger is always shared and updated amongst the peer network, meaning there’s no need to catch up or perform time-consuming data entry.
Cutting running costs
Another benefit that blockchain companies are enjoying is a decrease in their day-to-day running costs. With a distributed digital ledger, you don’t need to engage as many 3rd parties in order to get guarantees and protect transactions – all you need to care about is what the trustworthy ledger says.
There you have it, the main advantages that blockchain companies are enjoying and using to help their business thrive. While the buzz around distributed ledger technology has settled over the last year or so, there is no doubt about its utility when leveraged on behalf of business enterprises that want more transparency and security in transactions.