Blockchains are a type of distributed, decentralised ledger. It is a public or private database that can store data permanently and securely, which means that it’s not controlled by one entity.
This is what makes blockchains so exciting for businesses — they offer benefits like:
Immutability
Blockchain transactions cannot be tampered with or altered without consensus from the network, which provides an additional layer of security.
Decentralisation
There’s no central point of failure for blockchain networks; this gives them high fault tolerance and security levels.
Transparency
Blockchain transactions are visible to everyone in the system. This makes it easier to keep track of information and trace transactions through the system.
Therefore, blockchain benefits for businesses result in reduced costs, increased efficiency, and better security. It could also lower the time for transactions to complete because blockchains record all data on the blockchain in chronological order. This benefits both large and small companies because they can now effectively monitor their assets, which helps them reduce theft or damage from loss. Thus, the benefits of blockchain technology for businesses are universal.
What are the benefits of private blockchains?
Private blockchains are an extension of this technology that is limited only to companies or groups of companies who are part of the network and would like it to remain confidential. Therefore, private blockchains can be a good option for smaller companies who want quality control but are wary of privacy issues. Their benefits also include increased security and reduced costs, as well as faster transaction times.
For example, Ripple is a real-time settlement and remittance service that provides “secure, instant and nearly free global financial transactions of any size without fees” from anywhere in the world. If you ask yourself, “what can blockchain do for my company”, Ripple is a good example. Some benefits that Ripple’s blockchain brings to banks are scalability, fast transaction settlements, and lower liquidity costs, thereby increasing profits.
There are benefits of blockchain in insurance as well. For instance, once blockchains become commonplace, they will be able to process policy documents in a fraction of the time it currently takes. This benefits both consumers and insurers because it saves money on processing time while reducing potential errors.
What can blockchain do for you?
You can benefit from blockchain benefits by updating your processes to make them more efficient. For instance, one benefit of blockchain technology is faster transaction settlements. You could use a company like Ripple to settle payments faster.
Another way that businesses are benefiting from blockchain benefits is by getting rid of intermediaries. For instance, banks can now get rid of the middlemen who oversee transactions such as wire transfers because blockchains provide an immutable ledger of only verified transactions. This benefits both the bank and its customer in the long run because it saves a significant amount on processing fees associated with such transactions. For you, this means reduced costs and less stress.
