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Understanding The Business Value Of Blockchain

Understanding The Business Value Of Blockchain

The underlying technology of Blockchain is an old technology that has been around for a long time. We are creating a new mechanism by combining various technologies. But because the news typically talks about Bitcoin, Blockchain appears to be an innovation that just appeared. And this conception is an obstacle.

Decentralized Management And Centralization

Blockchain is a technology to carry out the distributed management of information. One of the data storage methods is to link transaction information (who passed what information to whom) and create a single transaction ledger (or chain) for all parties involved. One of the centralized modes is that no one person has a book, but all participants have an account and manage it anonymously. 

Some Of The Benefits Of Using Blockchain Are:

  • Suitable for sharing information between multiple parties
  • Data alteration is difficult because everyone has the same data
  • Can be recovered immediately in the event of a system failure

For these reasons, by using Blockchain, all parties involved can easily share information and always know the status of the transaction. Bitcoin is one of the systems that implement these features, in the form of currency.

Blockchain is an underlying technology for decentralized information management, and Bitcoin is a system that implements it as a virtual currency; However, since Bitcoin technology has emerged as an underlying Bitcoin technology, the confusion between the two is a cause of misunderstandings.

Currently, Blockchain projects specialized in purposes other than cryptocurrencies are attracting attention. Applied research is underway in various areas, such as real estate registration and internal supply chain management.

Also Read: Advantages Of Using Blockchain For Data Management In Business Applications

Moving From The Culture Of Checkbooks And Paper To The Culture Of Digital Natives

One of the changes that Blockchain brings to the business scene is moving out of the culture of checkbooks and paper.

One of the examples where Bitcoin is used is in foreign remittances. In typical foreign payments, the customer first creates a transfer request form. This information is transmitted to the source bank of the transfer → bank retransmission → destination bank of the transfer, and finally, it is reflected in the balance of the recipient’s account. Since every bank has a ledger, it requires at least three book updates, two or more business days, and some money.

With Bitcoin, the client-side and the receiver side have the same book. For example, the customer enters the transaction information. Send ten Bitcoin virtual currencies to the receiver through the Blockchain. The data is written to the account of the entire network, and the receiver receives the 10 bitcoins. Although it takes a bit of time and a small fee to write the transaction information, you can send money faster and cheaper than with traditional foreign money transfers. And you don’t need a bank to handle all the paper vouchers, and you can eliminate the entire middleman process.

When considering businesses, Blockchain has the potential to completely transform the business process, by systematizing today’s paper-based commerce and creating a digital business from scratch.

Blockchain Accelerates The Business Ecosystem

Another feature that should be highlighted is the ability to share information in real-time between related parties.

For example, if you are currently enrolling in life insurance, you will have to go through various procedures, such as medical evaluations by a doctor, and then record them in the insurance company’s contract record. If this were implemented in the Blockchain, instead of registering in the contract registry of the insurance company, it would be registered in the book shared by all the parties involved. The processing that has been done through the insurance companies can now be done in a digital process, in which the information is transmitted by the doctors in real-time through the Blockchain. Doctors provide medical consultations to affiliates and write the results of the diagnosis on the Blockchain.

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