Blockchain

Rapid digital transformation across industries has impacted business operations and increased efficiency and productivity. Although, the internet space is always vulnerable and hence demands better security measures, especially when it comes to transactions and protecting confidential data. Blockchain is an emerging technology that uses a decentralized method of storing and transferring data on digital platforms. Although blockchain was created as a system to transact cryptocurrencies, it now has extended its impacts to other business sectors. 

Blockchain does not have an intermediary and hence, everybody can access the data history independently. The transactions through blockchain are transparent and users are identified with specific addresses and they are also given the choice to maintain anonymity. Blockchain creates a digital platform where transactions are shared, accessible, and secured by digital codes. The digital records of transactions are always available and can be validated. 

Blockchain Enables Cost-Cuts

During a digital transaction, usually, the intermediaries verify the authenticity and then perform the transactions. These intermediaries are expensive and they often demand disclosure of business information, which can threaten the security of the parties involved. But, verifying, substantiating, and auditing transactions are imperative for the digital markets to function. Blockchain offers a solution to this problem by using distributed ledger technology to store and safely record transactions. Blockchain does not involve an intermediary and thus performs costless verification. The audits on the blockchain are zero cost and provide reliable networking. Blockchain works in a peer-to-peer ecosystem which eliminates the need for contract negotiations with vague third-parties. 

Smart-Contracts

Blockchain can streamline the complicated process of transactions through smart contracts. Smart contracts ensure the execution of agreements without involving intermediaries or third-parties like financial service providers. Smart contracts are reliable since they work on predetermined rules that are accessible and transparent to the other stakeholders. All blockchain transactions are performed through immutable ledgers that are encrypted and hence provide maximum security of the contracts. Smart contracts are a cost-efficient and fast way of laying down an agreement between the buyer and seller, without compromising privacy and security. 

An Independent Architecture

Blockchain is a decentralized system that does not include intermediaries. The architecture of blockchain is such that individuals can alter the data without taking permission from any authority other than the individuals involved. Unlike the traditional client-server database, blockchain has a distributed network that ensures maximum safety and convenience among its users.

The blockchain system provides a tamper-proof, secure database that is protected by encrypted digital tokens. Blockchain architecture is not controlled by anybody and hence ensures traceability and security. 

The permissionless ecosystem of blockchains is only limited to public blockchain architectures where the identities are anonymous whereas private blockchain networks are controlled by a group that grants permission for transactions. 

Blockchain is the present and future of the digital market and can be leveraged in various industries especially financial service enterprises. Blockchain technology eliminates friction in the digital market and enables a smooth flow of information and transactions without demanding huge capital costs. A CIO article quotes a Statista report, which says that the blockchain market is expected to reach more than 2.3 billion dollars in 2021, which represents a ten times growth from the size of this market in 2016.