5 Tangible Benefits Of Blockchain
Blockchain is an unchangeable, decentralized open ledger. It is a mechanism to solve the trust issue between strangers. Generally speaking, blockchain technology removes the need for a trusted third party. Moreover, a data block stores important information like record of transaction and ownership. With its decentralized and trustless nature, blockchain technology can create tangible benefits for businesses through greater transparency, enhanced security, and easier traceability.
Five tangible benefits of blockchain
1. Decentralized distributed structure:
Blockchain technology can become a tool for collaboration between parties without mutual trust. Furthermore, it can improve various traditionally centralized fields. The benefit of decentralization is to improve transaction processing efficiency and eliminate the cost burden of the operation of the central organization. Lastly, 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. Ultimately, blockchain can automatically settle transactions, instead of dividing money through banks or other intermediaries.
2. Immutable timestamp:
It can solve the problem of data transparency, tracking, and protection. Nowadays, vast quantities of forged and illicit data pollute our lives. Fortunately, blockchain has opened the door for increased data tracking and information protection.
Case: Timestamps are essential to copyright protection. Content corresponding to the copyright is easily linkable. 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. Furthermore, it can solve the core deficiencies of IoT. Therefore, the parts 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. Everything on the blockchain is public, all records are publicly available, traceable, and almost impossible to tamper with.
4. Flexible programmable features:
It can help standardize the existing market order. Recently, the market order is lacking standardization. When transferring one’s assets, there is no guarantee that they can pay their due value in the future. If the programmable feature of blockchain technology is applied, a program can be edited. Moreover, the asset is recorded on the blockchain. Lastly, 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. Furthermore, smart contracts will allow us to redesign and simplify business practices that have existed for centuries. Therefore, many types of transactions will become more efficient, and in some cases from impossible to easy. Finally, smart contracts will enable point-to-point transactions between businesses.
It can improve and automate processes. Smart contracts can automatically execute transactions if the pre-programmed conditions and terms are met. Therefore, they eliminate the need for a middleman to regulate transactions, verify background checks, or even enforce contracts.
Case: The insurance industry is one sector that is overdue for a technological disruption. Smart contract automation allows clients to be able to quickly, and efficiently, settle insurance processes. For example, traditional auto insurance requires clients to purchase insurance from a middleman and provide the proper documentation, including driver records. If a smart contract is properly implemented using the appropriate policy, documentation, and data storage, a middleman becomes unnecessary because the smart contract can be automatically executed following an incident. Ultimately, smart contracts can facilitate the automation of the entire process.
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. In addition to these tangible benefits, blockchain will continue to develop and have more use cases. For example, FiO is actively developing products with low technical threshold blockchain technology applications. Ultimately, many industries can adopt these applications. 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.