Blockchain technology became known in 2008, when a certain Satoshi Nakamoto launched his own currency called Bitcoin, which works on this basis.
Blockchain is a chain of blocks that stores all information about transactions performed between participants. This data is visible to everyone, but it is not possible to change or falsify it. Because chains are not stored on any particular service, it exists on all computers connected to the network. The main feature of blockchain technology is that transactions are carried out without the participation of intermediaries (banks). This implies a number of benefits that are very beneficial to traditional businesses.
How does it work?
Experts believe blockchain technology can help fight corruption and fraud.
What benefits can blockchain bring to business?
The above principles allow you to solve many problems in business.
- Compromise when entering into a deal with unreliable parties. There are no risks in blockchain technology. Nobody can deceive you. The algorithms are built in such a way that each block is related to the previous one, and when a new one is added (which is confirmed by each participant), the registry is automatically updated. Thus, you do not have to worry that any of the parties will not fulfill their obligations when exchanging BTC to PKR.
- The speed of the transaction. Money transfers using blockchain take no more than 2-3 minutes. Using the “usual” methods, the procedure can take up to several days.
- Reduced commission costs. Blockchain technology significantly reduces costs due to the lack of intermediaries. If a company makes a lot of transactions, then even seemingly small commissions end up in a tidy sum.
- Ensuring complete confidentiality. Hacking a blockchain requires access to the millions of computers that are used on the network. This is technically impossible to accomplish. Using blockchain technology, companies get one hundred percent security for free.
- Thus, blockchain technology can save company money, automate most of the processes and reduce risks.
- Between the client and the company.
What are the areas of use for blockchain technology?
There are many applications. Here is just a short list:
- Certification of documents;
- Tracking of food and goods;
- Voting and referendum systems;
- Project management;
- Financial services;
- Supply chain management system;
- CRM (customer relationship management);
- Settlement of disputes;
- Tokenization of assets, property rights, etc. In other words, the creation of tokens (tokens) in the blockchain to express a share in any project: for example, a share from a house or apartment, a share in a company, certain rights under a contract, or the ability to use part of the functions on a platform. Tokens are easy to resell, easy to transport and store, tracking their movement or, on the contrary, erasing all traces – all depending on the blockchain protocol.
The innovation of blockchain technology is that information about transactions is no longer stored in a centralized database, but is transferred to the computers of all network participants, which store data locally. The first application based on blockchain technology was the Bitcoin application for the so-called cryptocurrency (bitcoin).