Currently, information technology is developing very rapidly. One of the technologies that have been widely discussed in recent years is blockchain. Various industries and companies consider blockchain one of the technologies that can support their business. So, what exactly is blockchain, and how is it used for business?
Blockchain is a digital ledger that allows all transactions to occur decentralized across businesses. This is because the digital data storage media in the blockchain are connected. These interconnected blocks can later be used to execute a transaction. The various data blocks are secured and tied to each other using cryptography principles.
Blockchain technology allows everyone to view the same data without any modification. Not a few companies are looking at this technology to be applied according to their industry and business. The following are some of the uses that can be obtained from blockchain technology, including:
1. Transparent System
Besides being effective for storing information and transactions, the blockchain technology system is also proven safe and transparent. When there is a transaction in progress, all parties can see public access without needing to log in. Using blockchain technology, user information and funds cannot be used without the owner’s knowledge.
2. Data Protection
The database structure on the blockchain is append-only. That is, it can only be added and cannot be repaired. That way, the blockchain system will be complicated for hackers to penetrate.
3. Better Audit
Blockchain allows users to know the audit trail of their assets, so the risk of embezzlement can be minimized.
4. Reduce Cost
Blockchain technology will indirectly eliminate middlemen who often add transaction costs. Blockchain can help businesses cut costs by removing intermediaries or third parties traditionally tasked with providing the processing that blockchain can do.
5. Increase Efficiency
Traditional processes are often time-consuming, prone to user error, and require mediation with third parties. Meanwhile, with blockchain, transactions can be completed faster using transaction details and eliminate the need to exchange paper.
6. Improve Security and Privacy
The increased security provided by the blockchain system stems from the workings of the blockchain technology itself, where the blockchain creates an immutable record of transactions with end-to-end encryption to minimize fraud and unauthorized activities.
From the explanation above, we can see that blockchain technology has many advantages compared to traditional systems. Blockchain technology makes various parties independent in managing their data and business transactions transparently.