- Blockchain technology is a technology that leads to a chain of blocks, containing digital information stored in a public database.
- It is a distributed database existing on multiple computers at the same time, which constantly grows as new sets of recordings or blocks are added to it.
Advantages of blockchain technology:
Integrity of the whole process:
- Blockchain technology ensures integrity of the entire process. It means that any block or even a transaction that adds to the chain cannot be edited which ultimately provides a very high range of security.
Security:
- Blockchain is considered to be a highly secure system due to its digital signature and encryption.
- This ensures that the owner of the account himself is operating the transactions.
Faster processing:
- Before the invention of the blockchain, the traditional banking organization took a lot of time in processing and initiating the transaction but after the blockchain technology speed of the transaction increased to a very high extent.
- Before this, the overall banking process took around 3 days to settle but after the introduction of Blockchain, the time was reduced to nearly minutes or even seconds.
Fraud prevention:
- A system that is based on data stored in a number of places is immune to hackers.
- It is not that easy to get access to it, and if so, any piece of information can be easily recovered
Transparency:
- Banks, as well as the clients, are immediately notified about the completion of transactions, which is both convenient and trustworthy.
Applications
Governance:
- Blockchain technology can help in ensuring good governance.
- It ensures transparency of the public records through the usage of a digital form platform and allows auditing of government documents.
Banking:
- Blockchain can help in avoiding risk of payment losses involved in banking transactions by adopting secure distributed ledger platforms.
- It reduces transaction fees across cross-borders, corporate payments and remittances.
Food & Supply Chain:
- It creates a tamper proof record to check the real information about expiration date, product journey from the farm to the shop.
- The real information of the product can help in improving the reliability and efficiency of the supply chain system.
Insurance:
- Blockchain technology can change the ways the insurance documents, claim settlements and fraud handlings are carried out.
- It allows the creation of a transparent, secure, decentralized and immutable insurance network.
Healthcare:
- It helps to prioritize patient health at all costs without compromising the quality of the health care service.
- By establishing a secure chain of networks, blockchain can help in handling the patient records, consent forms, billings and public health monitoring.
Automotive:
- Blockchain can solve the challenges in automotive manufacturing, car deliveries, billings.
- It can help in the creation of an after sales support ecosystem to keep track of the maintenance record of vehicle owners.
Tourism:
- Blockchain can reduce the delay time of passenger document handling, creates a decentralized hotel booking ecosystem at the least transaction fee and also keeps passengers private information safe.