4 Tangible Benefits Of Blockchain
Blockchain is an unchangeable, decentralized open ledger, which means that it can be used as a mechanism to solve the trust issue between strangers. Generally speaking, blockchain technology means that when there is no trusted third party, all transaction data will be stored in a data block. With its decentralized and trustless nature, the technology can create tangible benefits for businesses through greater transparency, enhanced security, and easier traceability.
Four advantages of blockchain
1. Decentralized distributed structure:
Blockchain technology can become a tool for collaboration between parties without mutual trust, and it can be used to enhance many traditionally centralized fields. The benefit of decentralization is to improve transaction processing efficiency; eliminate the cost burden of the operation of the central organization; all nodes on the network participate in the verification and recording of transactions on an equal footing, excluding those controlled by any central organization risk.
Case: DeFi has revolutionized traditional financial services as decentralized applications that do not require custody of users’ funds while it is running. When you need a loan, you only need to use cryptocurrency as collateral to get the loan immediately. This will create a smart contract to gather funds from other people who stake funds on the blockchain, without having to go through the approval process of a centralized bank loan. Transactions are automatically settled on the blockchain instead of dividing money through banks or other intermediaries.
2. Immutable timestamp:
It can solve the problem of data transparency, tracking, and protection. Nowadays, our lives are filled with vast quantities of forged and illicit data, and blockchain has opened the door for increased data tracking and information protection.
Case: The prominent application of timestamp is manifested in copyright protection. The texts, songs, pictures, and other works corresponding to the copyright can be easily linked. With the help of blockchain technology, the information submitted by the author will be recorded into a block with the author’s information, and the corresponding timestamp will be stamped. When the copyright transfer occurs, it will also bring timestamp to validate proof, which provides great convenience for solving the problem of copyright ownership.
3. A secure trust mechanism:
It can solve the core defects of today’s IoT. The traditional IoT model uses a centralized data center to collect all information, which leads to serious defects in the life cycle of the equipment. Blockchain technology can create a trusted consensus of the entire network without trusting a single node, which can solve some of the core deficiencies of IoT so that things are not only connected but also spontaneously active.
Case: Using the blockchain ledger to show partners the income and expenditure of the entire investment process can show that there is no deception. This trust is built on the blockchain’s trust mechanism, namely trustless. Everything on the blockchain is public, all records are publicly available, traceable, and almost impossible to tamper with.
4. Flexible programmable features:
Can help standardize the existing market order. Nowadays, because the market order is not standardized enough when transferring one’s assets, there is no guarantee that they can play their due value in the future. If the programmable feature of blockchain technology is introduced, a program can be edited and written into it while the asset is transferred, and the future use and direction of the asset can be specified.
Case: Ethereum is fully programmable and has its programming language Solidity. The programmable blockchain is essentially a global computer, and anyone can see the results of each calculation. Using a programmable blockchain, we can create smart contracts to implement peer-to-peer business transactions. Smart contracts will allow us to redesign and simplify business practices that have existed for centuries. Many types of transactions will become more efficient, and in some cases from impossible to easy. Many future businesses will be conducted directly point-to-point through smart contracts.
Fastest growing technology – Blockchain
Today, blockchain technology has penetrated all walks of life, and some unique characteristics presented by the blockchain have indicated that the blockchain will continue to survive. FiO is to actively develop products with low technical threshold blockchain technology applications, which are currently being adopted in many industries. Blockchain uses technical means to enable organizations and individuals to improve collaboration efficiency in a distributed manner under the rules of a unified consensus. At present, many companies and governments are also trying to adopt more applications to find out what blockchain technology can do, our goal is to help these organizations realize the greatest value that the technology can provide them with.